Is an LL.M tax deductible?


walker
I was wondering if anybody knows if the cost of and LL.M is tax deductible, for a domestic LL.M. I read somewhere that if you take at least one year off and work in between your JD and LL.M degree, you can deduct the cost of the LL.M from your income, as the degree is not preparing you for a new profession, but is only providing you with a specialization.

Does anybody know if this is true? Are there any other catches or rules that I should be aware of?
I was wondering if anybody knows if the cost of and LL.M is tax deductible, for a domestic LL.M. I read somewhere that if you take at least one year off and work in between your JD and LL.M degree, you can deduct the cost of the LL.M from your income, as the degree is not preparing you for a new profession, but is only providing you with a specialization.

Does anybody know if this is true? Are there any other catches or rules that I should be aware of?

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richardvf
I am all but certain that It would be tax deductible if you are a licensed attorney.
I am all but certain that It would be tax deductible if you are a licensed attorney.
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M.L.
I am a Brazilian attorney and currently a part-time llm student, part-time paralegal. Does anyone know if the LLM tuition tax-deductible in my case? Thanks.
I am a Brazilian attorney and currently a part-time llm student, part-time paralegal. Does anyone know if the LLM tuition tax-deductible in my case? Thanks.
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keesoman
For more guidance on whether an LL.M is tax deductible, See Wassenaar v. Commissioner, 72 T.C. 1195 (1979).

Essentially, you must be a licensed attorney prior to seeking an LL.M, and you have to be able to establish that the continuing education was a "necessary expense incurred in a trade or business," meaning your primary area of practice should probably be tax law.

However, I am sure you could make a valid argument even if your primary practice is not tax, considering the courts have traditionally viewed seeking an LL.M as "continuing education," as defined under Treas. Reg. 1.162-5(a)(1), and not as qualifying the attorney for a new trade or business, as defined under Treas. Reg. 1.162-5(b)(3).
For more guidance on whether an LL.M is tax deductible, See Wassenaar v. Commissioner, 72 T.C. 1195 (1979).

Essentially, you must be a licensed attorney prior to seeking an LL.M, and you have to be able to establish that the continuing education was a "necessary expense incurred in a trade or business," meaning your primary area of practice should probably be tax law.

However, I am sure you could make a valid argument even if your primary practice is not tax, considering the courts have traditionally viewed seeking an LL.M as "continuing education," as defined under Treas. Reg. 1.162-5(a)(1), and not as qualifying the attorney for a new trade or business, as defined under Treas. Reg. 1.162-5(b)(3).
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This might also be relevant: Goldenberg v. Comm'r, 65 T.C.M. 2338 (1993).
This might also be relevant: Goldenberg v. Comm'r, 65 T.C.M. 2338 (1993).
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