Comments on: Ask the taxgirl: Bar fees and other legal career-related expenses http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 20:16:58 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Cal. JD http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9417 Cal. JD Mon, 09 Mar 2009 22:41:16 +0000 http://www.taxgirl.com/?p=2593#comment-9417 Great info. on here. Thanks guys. In line w/ the legal fees question, I am a recent law grad, just took the bar exam for the first time in Feb., 2009. I understand that BARBRI/PMBR prep course fees are NOT deductible and neither are the Bar Exam and Moral Character fees. Too bad, b/c all those fees/costs ran me about $6,000+!! Not to mention the hotel costs during the bar exam, which were also astronomically high (approx. $800). Recent law grads are swimming in sooo much debt these days, it's getting a bit ridiculous, but there are just so many jobs out there for us, why should I be concerned.... lol Anyway, on to my question and as it relates to legal fees. I had to retain an ethics lawyer in 2008 to advise me and represent me during the moral character application process w/ the Cal. Bar. Due to a few minor brushes w/ the law in my past (non-moral turp offenses, i.e.: DUI), I was instructed to retain an ethics attorney. I was told by multiple lawyers and law professors that this was in my best interest, otherwise my moral character application and Bar license could be substantially delayed, preventing me from being able to maintain my job at a corp. defense firm (I had an offer, which has since been rescinded due to a "hiring freeze"). This issue is certainly materially related to and w/i the scope of my employment, in fact, it is directly related to my employment and ability to practice my trade. I was planning on deducting these fees, but I want to make sure I'm working w/i the confines of the law on this. Any advice would be appreciated. Thanks! Great info. on here. Thanks guys.

In line w/ the legal fees question, I am a recent law grad, just took the bar exam for the first time in Feb., 2009. I understand that BARBRI/PMBR prep course fees are NOT deductible and neither are the Bar Exam and Moral Character fees. Too bad, b/c all those fees/costs ran me about $6,000+!! Not to mention the hotel costs during the bar exam, which were also astronomically high (approx. $800). Recent law grads are swimming in sooo much debt these days, it’s getting a bit ridiculous, but there are just so many jobs out there for us, why should I be concerned…. lol

Anyway, on to my question and as it relates to legal fees. I had to retain an ethics lawyer in 2008 to advise me and represent me during the moral character application process w/ the Cal. Bar. Due to a few minor brushes w/ the law in my past (non-moral turp offenses, i.e.: DUI), I was instructed to retain an ethics attorney. I was told by multiple lawyers and law professors that this was in my best interest, otherwise my moral character application and Bar license could be substantially delayed, preventing me from being able to maintain my job at a corp. defense firm (I had an offer, which has since been rescinded due to a “hiring freeze”). This issue is certainly materially related to and w/i the scope of my employment, in fact, it is directly related to my employment and ability to practice my trade.

I was planning on deducting these fees, but I want to make sure I’m working w/i the confines of the law on this. Any advice would be appreciated. Thanks!

]]> By: Ask the taxgirl: Reimbursed Expenses | taxgirl http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9321 Ask the taxgirl: Reimbursed Expenses | taxgirl Fri, 06 Mar 2009 14:56:36 +0000 http://www.taxgirl.com/?p=2593#comment-9321 [...] the rule different if the firm pays for the BarBri expenses themselves? Is this repayment taxable as ordinary income? [...] [...] the rule different if the firm pays for the BarBri expenses themselves? Is this repayment taxable as ordinary income? [...]

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9320 Kelly Fri, 06 Mar 2009 13:15:10 +0000 http://www.taxgirl.com/?p=2593#comment-9320 Michael - It's hard to tell based on your summary but here is the general rule: legal fees are may be tax deductible if the dispute arose in the course of your business or employment (strictly personal legal fees are NOT deductible). If deductible, the legal fees would be considered miscellaneous itemized tax deductions and would be included on Schedule A. Michael -
It’s hard to tell based on your summary but here is the general rule: legal fees are may be tax deductible if the dispute arose in the course of your business or employment (strictly personal legal fees are NOT deductible). If deductible, the legal fees would be considered miscellaneous itemized tax deductions and would be included on Schedule A.

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9319 Kelly Fri, 06 Mar 2009 13:12:19 +0000 http://www.taxgirl.com/?p=2593#comment-9319 L Sylvia - I'm not 100% sure about the patent bar expenses but I would assume that it's still an entry level exam? If so, not deductible. Re the reimbursements, I'm working on a post about those. L Sylvia -
I’m not 100% sure about the patent bar expenses but I would assume that it’s still an entry level exam? If so, not deductible.
Re the reimbursements, I’m working on a post about those.

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9318 Kelly Fri, 06 Mar 2009 13:10:30 +0000 http://www.taxgirl.com/?p=2593#comment-9318 Andy, assuming that your wife meets the criteria, she can likely deduct some of the interview-related expenses as job search expenses. See http://www.taxgirl.com/ask-the-taxgirl-job-search-expenses/ The tests would, I believe, be treated the same as in the legal world - not deductible. But then, I've never been to med school, so I'm assuming that the tests you're speaking of are mandatory job requirements, like the bar exam. Andy, assuming that your wife meets the criteria, she can likely deduct some of the interview-related expenses as job search expenses. See http://www.taxgirl.com/ask-the-taxgirl-job-search-expenses/

The tests would, I believe, be treated the same as in the legal world – not deductible. But then, I’ve never been to med school, so I’m assuming that the tests you’re speaking of are mandatory job requirements, like the bar exam.

]]> By: michael http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9086 michael Tue, 24 Feb 2009 21:33:13 +0000 http://www.taxgirl.com/?p=2593#comment-9086 I had to pay 10,000.00 to a lawyer to defend an action that was job related Iam a police officer who needed to file unfair labor act against Phila. are his fees deductable and if so what line and where on my forms. I had to pay 10,000.00 to a lawyer to defend an action that was job related Iam a police officer who needed to file unfair labor act against Phila. are his fees deductable and if so what line and where on my forms.

]]> By: L Sylvia http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9041 L Sylvia Sun, 22 Feb 2009 14:43:34 +0000 http://www.taxgirl.com/?p=2593#comment-9041 How about patent exam review courses and expenses (for an attorney)? Does that count as a "bar review" course? Also, I have all these random "year to date deductions" (including Bar expense offset, pretax dental plan, group term life offset, etc.,) on my W2 from my employer--any idea at all as to what do any of those mean (that is should I just ignore them or are they called "deductions" for any reason)? Thanks. How about patent exam review courses and expenses (for an attorney)? Does that count as a “bar review” course?

Also, I have all these random “year to date deductions” (including Bar expense offset, pretax dental plan, group term life offset, etc.,) on my W2 from my employer–any idea at all as to what do any of those mean (that is should I just ignore them or are they called “deductions” for any reason)?

Thanks.

]]> By: Andy http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9035 Andy Sat, 21 Feb 2009 22:06:17 +0000 http://www.taxgirl.com/?p=2593#comment-9035 Hi, I have a question that I think fits into this same vein, though it could also apply to 'job search expenses.' My wife is graduating from Medical school in May, so she's spent lots of money on mandatory tests, residency applications, certifications, subscriptions and supplies to prepare for these tests, and then of course we spent plenty of money on travel, hotel, food, etc for going to her many residency interviews. While obviously residency will be her first job as a licensed physician, it certainly won't be her first job in the general field of biology or science in preparation for becoming a doctor. How should we break everything up and what, if any, can we deduct, and how to we show that on the forms? Thanks! Hi, I have a question that I think fits into this same vein, though it could also apply to ‘job search expenses.’ My wife is graduating from Medical school in May, so she’s spent lots of money on mandatory tests, residency applications, certifications, subscriptions and supplies to prepare for these tests, and then of course we spent plenty of money on travel, hotel, food, etc for going to her many residency interviews. While obviously residency will be her first job as a licensed physician, it certainly won’t be her first job in the general field of biology or science in preparation for becoming a doctor. How should we break everything up and what, if any, can we deduct, and how to we show that on the forms? Thanks!

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9002 Kelly Thu, 19 Feb 2009 18:21:03 +0000 http://www.taxgirl.com/?p=2593#comment-9002 Yep, as do all miscellaneous expenses on Schedule A. Yep, as do all miscellaneous expenses on Schedule A.

]]> By: TaxLL.M. http://www.taxgirl.com/ask-the-taxgirl-bar-fees-and-other-legal-career-related-expenses/comment-page-1/#comment-9001 TaxLL.M. Thu, 19 Feb 2009 18:17:23 +0000 http://www.taxgirl.com/?p=2593#comment-9001 Also, assuming that you meet the threshold requirement for deducting the expenses incurred in obtaining the LL.M., wouldn't it also be subject to the §67 2% floor? Also, assuming that you meet the threshold requirement for deducting the expenses incurred in obtaining the LL.M., wouldn’t it also be subject to the §67 2% floor?

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