Using an LLC to pay for law school? Write-off?

I am a paralegal for a law firm and am about to enter law school. I also have an LLC that I use as a document preparing company for friends I know to review leases, draft articles of incorporation/organization and so forth. It provides passive income for me for relativley little work. However, my question.

I want to have my own firm (it would be an P.C. S-Corp election) my current LLC will be the majority shareholder. Can I have my current LLC pay for law school and use it as a tax write-off?

No, you cannot. It would not be an ordinary and necessary expense for the business.

tranquility said:

No, you cannot. It would not be an ordinary and necessary expense for the business.

Click to expand...

I agree. However, you may be eligible for the tuition and fees deduction on your personal return, or the Lifetime credit.

Interesting. Although my attorney offered to pay for part of my law school. If I were to accept that arrangement wouldn't "the firm" (being the corporation) pay for my law school? I'm sure he wouldn't shell out 30-50K of his own money to pay for law school. How would he write that off?

And the same goes for me in the future after I'm an attorney. If I have an employee and want to pay for their law school, how would I write it off?

It's a fringe benefit of employment -- the employer can write off about $5,000 of employment assistance. More than that is taxable wages.

I agree with the other posters, but believe the current amount is $5,250. Also, to qualify, it generally needs to be a part of an educational assistance program. Someone can look up the actual requirements, but I recall:
1. It has to be a written plan.
2. It can't favor highly compensated employees.
3. Certain percentage limitation applies to owners. (In other words, only a certain percentage of the program's benefits can go to owners.)
4. All eligible employes must be notified of the program.

I think there is another requirement, but don't know it offhand. Anyone?

How about this?

What if you are employed by the LLC as a legal assistant/advisor and the company requires that you obtain a JD/LLM and pass the bar in order to maintain your current position? Can't you write off the expenses incurred to obtain your degree to maintain your job?

How about you start your own thread so we can tell you why you're wrong, rather than necroposting in a FOUR YEAR OLD one.