Law School as a write off?

[MarshallChris91]

California

I have been a real estate broker for the past 3+ years. I decided to go to law school to specialize in real estate law. I will graduate in May with a certificate in real estate law. I have made $250,000 for the past 3 years and want to write off my law school expense of approximately $20,000 per year (the other half is a scholarship).

When I filed my taxes last year, my tax professional said I could not write off the $20,000 because it qualifies me for a new profession. However my sole intent to go to law school was not to become a full time attorney upon graduation but to learn more about real estate laws and become a better real estate broker.

From what I gather, there is not even any other education write off I can use. Because I am filing my taxes in the next few months, should I amend my 2011 tax to include the law school as a write off and apply it in 2012 as well? If so, is there a case or law I can use to justify this? Is there a high chance of being audited? Any information on this would be appreciated.

 

[LdiJ]

California

I have been a real estate broker for the past 3+ years. I decided to go to law school to specialize in real estate law. I will graduate in May with a certificate in real estate law. I have made $250,000 for the past 3 years and want to write off my law school expense of approximately $20,000 per year (the other half is a scholarship).

When I filed my taxes last year, my tax professional said I could not write off the $20,000 because it qualifies me for a new profession. However my sole intent to go to law school was not to become a full time attorney upon graduation but to learn more about real estate laws and become a better real estate broker.

From what I gather, there is not even any other education write off I can use. Because I am filing my taxes in the next few months, should I amend my 2011 tax to include the law school as a write off and apply it in 2012 as well? If so, is there a case or law I can use to justify this? Is there a high chance of being audited? Any information on this would be appreciated.

Well, it sounds like you make too much money to be eligible for any education credits, so that wipes out the other possible alternative. To be honest, this is one where I would want to do research to find out if there were any circumstances that would allow you to take a deduction for law school. I am leaning seriously against it, but if you were willing to pay your tax professional to do some serious case law research I cannot say that there is no chance at all. Do you intend to take the Bar exam?

 

[xylene]

Why do you not believe or trust your tax adviser?

If you don't trust or believe your tax adviser, you should solicit a second opinion. You are of sufficient means that such a consultation should perhaps be routine given your state of doubt in your current provider.

 

[tranquility]

Even with research, I find it hard to think law school will be an ordinary and necessary expense for a real estate broker. I don't think this will fly.

 

[Mass_Shyster]

I will graduate in May with a certificate in real estate law.

What is a certificate in real estate law? Does it qualify you to sit for the bar exam?