Sally owns a beauty salon – Sally’s Salon. She is a sole proprietor and will therefore file a Schedule C. She employs one stylist – Suzie. During 2020 Sally took courses on how to run a salon business – cost her $2000 to attend these courses but were very helpful. She also subscribes to a number of magazines – “Style Now” and “Makeup the Best Makeup” – the total cost for these educational magazines - is $300. Finally, she needs to be a certified Salonist so she takes a continuing ed course on trends in the business and best ethical practices for hairstylists – which costs $3000. Suzie, on the other hand, was new in the business and took her stylist prep which cost $1500. She passed! Then she also paid for a prep course for this the prep – cost was $1000. She did this while she was working as an employee at Sally’s Salon. 

a. Can Sally deduct her expenses and if so where? For AGI or From AGI? 

b. Cab Suzie deducts HER expenses and if so where? For AGI or From AGI? 

c. Please explain both of your answers.