Comments on: Ask the taxgirl: Bar fees and other legal career-related expenses

By: Steve

Steve — Sat, 28 Jan 2012 22:23:15 +0000

I took the Barbri prep course before passing the bar exam in 2011. I work for an employer which did not require that that I pass the Bar but “encouraged” it. Is there any way I can claim the Barbri prep tuition as a Lifetime Learning Credit item in 2011?

By: Omar

Omar — Wed, 04 Jan 2012 15:35:18 +0000

Taxgirl, I passed the July 2011 Florida bar exam. However, due to a DUI my admission is being delayed. Currently, I’m in a monitoring program that is required of me before I’m conditionally admitted. Part of my contract (yes, a contract) I have to pay $25/month to be monitored. When I’m admitted, the dues are $75/month. I’ve been paying the $25 month and already paid a $250 program registration fee. Are these payments tax deductible? Like I said, I have to pay this and if I don’t, its a breach of contract with the Florida Bar and grounds for denying my conditional admission.

By: Nicole

Nicole — Mon, 28 Nov 2011 01:48:43 +0000

i have been working as a lawyer in mass. and recently visited florida and took the bar review course, and successfully passed the bar exam. ive decided that i would like to open a second law office in florida and work from there 3 months out of the year, while my brother works in mass. am i able to deduct the cost of the florida bar review course as an education expense even though i am already established as a lawyer by passing the mass bar exam?

By: Kelly

Kelly — Thu, 29 Sep 2011 14:23:10 +0000

I’m not sure that I understand your distinction.

By: Yvonne

Yvonne — Mon, 19 Sep 2011 16:55:54 +0000

I am currently working as a contact attorney for a friend’s firm. I will be doing all of my work from home. Can I deduct business related expenses (I.e. Costs of supplies, business cards, home office equipment, etc.)?

In addition, I’m getting my LLM while working as a contract attorney. Based on the chart in Publication 17, it looks like the costs are deductible as I’m “improving skills”. Would you agree? I’ve practiced for 6 years in my field.

By: Crazygoat

Crazygoat — Fri, 02 Sep 2011 18:03:45 +0000

Taxgirl,

re: deductability of LL.M. expenses

You stated that the taxpayer must be practicing tax law prior to the commencement of the program in order to qualify for the deduction. I don’t think that’s right. Please see 30 T.C.M. 675, 680 and PLR 9112003. All that is required is that the taxpayer prior to entering into the LL.M. program, be engaged in a trade or business involving the general type of work (i.e., the practice of law). Thus, a practicing attorney at the time when he entered into a LL.M. program may deduct the related expenses if he returns to practicing law within a year.

By: Mel

Mel — Mon, 15 Aug 2011 18:33:45 +0000

I’m barred in Maryland but my employer (small firm) would like me to waive into the DC bar and also sit for the VA bar since the firm does a lot of business in the greater DC area. My employer is not willing to pay for me to do this, thus it would be on my own dime. Are the fees to waive into DC and sit for VA tax deductible? I think I might be able to get a small raise once I was barred in all 3 places, but don’t want to bank on it.

By: Jeff

Jeff — Wed, 09 Feb 2011 22:06:33 +0000

Hi, hope you still track this thread. My wife took and passed the bar last year and while her exam fees are not deductible. Can we deduct her fees for bar associations, etc. on our joint return although she has not started to practice because we have 2 young children? Didn’t know if she could still be consider self-employed despite not taking any clients.

By: Laura Reagles

Laura Reagles — Thu, 23 Sep 2010 20:59:14 +0000

I am sorry I do not understand, since LLM tuition is qualified education expenses, are you saying is not deductible as a reducement of income (adjustment) for tuition and fees?

By: Pat Pend

Pat Pend — Tue, 29 Jun 2010 17:41:43 +0000

Kelly, thanks for your quick response. I agree with the CPA too, but the firm was firm, so to speak, and it was better to pay the additional tax than not receive the stipend. So I found myself in the “legal services” business. I was not a member of the bar in any state prior to December, when I was admitted on the same day to both states, but I was already a patent agent (not practicing). Payments from the firm were rec’d Sept. and Oct. and estimated tax payments were made for last 2 quarters, although Q3 was late since I didn’t realize this would be how the income was classified.

Since I can’t report as wages, I expected to put all expenses on Sched C, but do you think expenses related to 2nd state bar exam (fees, travel) qualify as business expenses in this case? Any other thoughts as to what does/does not qualify in this somewhat unusual case?