Tuesday, February 18, 2014
Philip Rukosuev, The Non-Deductibility of Juris Doctorate Degree Expenses Under Treasury Regulation 1.162-5, Ill Bus. L.J. (2013):
[I]n cases where concrete educational and examination requirements to become legally eligible to practice in a field must be met, the courts apply an objective approach to determine the deductibility of such expenses. The facts and circumstances of each case are not considered, rather, courts simply disallow a deduction exclusively because the education objectively qualifies the taxpayer in a new trade or business. Thus, the expense of obtaining a JD degree is never deductible under the present-day regulation since an individual may only practice in the legal profession by obtaining the compulsory education and passing the requisite bar examination.
(Hat Tip: José Gabilondo.)