malpractise ins. for new graduate

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Subject Author Date malpractise ins. for new graduate jake 08-24-2009  Re: malpractise ins. for new graduate removeps-groups@yahoo.com 08-25-2009  Re: malpractise ins. for new graduate Stuart A. Bronstein 08-25-2009  Re: malpractise ins. for new graduate Dick Adams 08-26-2009  Re: malpractise ins. for new graduate removeps-groups@yahoo.com 08-27-2009  Re: malpractise ins. for new graduate Stuart A. Bronstein 08-27-2009  Re: malpractise ins. for new graduate Dan Lanciani 08-27-2009  Re: malpractise ins. for new graduate jake 08-30-2009   Re: malpractise ins. for new graduate Steve Pope 08-31-2009  Re: malpractise ins. for new graduate Stuart A. Bronstein 08-31-2009  Re: malpractise ins. for new graduate Y 08-26-2009  Re: malpractise ins. for new graduate jake 08-30-2009  Re: malpractise ins. for new graduate Y 08-31-2009  Re: malpractise ins. for new graduate Stuart A. Bronstein 08-31-2009
Posted by jake on August 24, 2009, 9:08 pm Please log in for more thread options son just received his medical license. no job yet but each potential offer includes demand he has malpractise insurance on his own. is the cost deductible? is it if he does not find job this year but works temp jobs just to pay his bills? for now, I also assume his state board test fees (over 2k) are not deductible. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on August 25, 2009, 4:31 pm Please log in for more thread options > son just received his medical license. no job yet but each potential offer includes > demand he has malpractise insurance on his own. is the cost deductible? Yes. However, if he is an employee than the deduction is subject to the 2% rule, which means that only the amount above 2% of your AGI is deductible. In addition, the deduction is not allowed under AMT, and if he makes as much as a doctor he might be in AMT. On the other hand, if he is paid as a contractor then the deduction is allowed in full, and the deduction is allowed under AMT as well. > is it if he does not find job this year but works temp jobs just to pay his bills? It seems the expense should be deductible because the expense was incurred with the intention of making a profit. Of course, when your Schedule C business loses money, the IRS may view the business as a hobby, in which case the deduction would not be allowed. So you have to keep records to prove that this is a business intending to make a profit. Of course, shouldn't be buy malpractice insurance only once he has secured a job offer? > for now, I also assume his state board test fees (over 2k) are not deductible. Right. The tuition fees your pay to enter a new career are not deductible. Crazy rule, but that's the way it is. However, the annual tuition fees he pays thereafter to maintain his education/ skills is deductible. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Stuart A. Bronstein on August 25, 2009, 5:29 pm Please log in for more thread options >> for now, I also assume his state board test fees (over 2k) are >> not deductible. > > Right. The tuition fees your pay to enter a new career are not > deductible. Crazy rule, but that's the way it is. However, the > annual tuition fees he pays thereafter to maintain his > education/ skills is deductible. The state boards are not an educational expense but a qualifying exam. Do accountants who take the CPA exam in a state that requires it to be called a CPA, get to deduct it? -- Stu http://downtoearthlawyer.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Dick Adams on August 26, 2009, 7:35 am Please log in for more thread options > The state boards are not an educational expense but a qualifying > exam. Do accountants who take the CPA exam in a state that requires > it to be called a CPA, get to deduct it? I believe all 54 CPA Boards now require passing the CPA Exam for the initial license. That is a fairly broad question. In the case of myself and others I know who had professional Accounting Certifications upon entering graduate school, we deducted as much of our educational expenses as we could as Continuing Professional Education. Of course University Professors can write off almost all of their post-employment educational expenses. As for CPA exam fees, possibly a Tax Attorney or an Enrolled Agent who is already representing clients at audits and in Tax Court could safely deduct them. As always, the answer is "IT DEPENDS." The solution is to lay out all of your facts and circumstances to a tax professional who can assst in tax planning. Dick -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on August 27, 2009, 7:19 pm Please log in for more thread options wrote: > The state boards are not an educational expense but a qualifying > exam. Do accountants who take the CPA exam in a state that requires > it to be called a CPA, get to deduct it? The course you take to study in order to pass the state board exam may itself may have quizzes within it, but at the end there is one big quiz. And that quiz is the board exam. So if you need to pass this exam before you can enter the field, then it is not deductible. That's my reasoning. I'm happy to be proved wrong! But think of this strange scenario: Perhaps you can practice in another country where they don't require these board exams. So now you've already entered the field and are a practicing doctor, though you can only practice in another country. Then you return to the US and take a course and a board exam. It's certainly looks like continuing education now because you are already in the field. Even tax preparers in California have to take a 60 hour exam and pay an application fee of $25. I suppose the $25 fee is deductible because there is nothing educational about it. http://ctec.org/UserFiles/file/2008-2009%20NEW%20PREPARER_.pdf -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted deduct conference expenses for graduate student March 21, 2007, 1:27 pm