Smart to purchase bar review course Fall of 3L for tax benefits?

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Love With The Coco

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Smart to purchase bar review course Fall of 3L for tax benefits?

Postby Love With The Coco » Tue Nov 15, 2016 4:39 pm

I am under the impression that if your firm reimburses you for bar expenses that such reimbursement will be part of your AGI. Thus, would getting such reimbursement in fall of your 3L (the year of your summer internship) be a wise decision?

Or will that bar reimbursement only count as income during your stub year?

RaceJudicata

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby RaceJudicata » Tue Nov 15, 2016 5:23 pm

Are you really that concerned about your taxes? smh

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby Anonymous User » Tue Nov 15, 2016 5:36 pm

Love With The Coco wrote:I am under the impression that if your firm reimburses you for bar expenses that such reimbursement will be part of your AGI. Thus, would getting such reimbursement in fall of your 3L (the year of your summer internship) be a wise decision?

Or will that bar reimbursement only count as income during your stub year?


If you attend a work meeting and your firm buys you a lobster dinner and a bunch of Hennessy to drink, you do not report that on your taxes and it is not counted as AGI, correct? It is an expense. I believe the bar course is also an expense for your firm so it wouldn't be income to you.

I could be wrong here. If I am wrong, the $2k in AGI is not going to make or break your taxes, at all.

Love With The Coco

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby Love With The Coco » Tue Nov 15, 2016 6:24 pm

It's not a firm expense though, the benefit is for the attorney.

I am fairly certain it is taxed, but any confirmation would be helpful.

BigZuck

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby BigZuck » Tue Nov 15, 2016 6:39 pm

What difference does it make? Aren't you going to work like 10 (or so) weeks in both years so it really wouldn't matter when you get taxed on it?

Also time value of money, etc. if you really want to be a tax nerd about it?

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star fox

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby star fox » Tue Nov 15, 2016 6:51 pm

Yep. Always defer taxes and try to push income into counting in the subsequent year (legally of course)

RaceJudicata

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby RaceJudicata » Tue Nov 15, 2016 6:52 pm

If your mind is set on how to maximize your tax benefits, then go ahead and maximize your tax savings.

Also, your firm (mine does) reimburses all bar expenses at one time, so you may not even have a choice. Barbri is billed directly to them so you are never "reimbursed" for it.

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kellyfrost

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby kellyfrost » Tue Nov 15, 2016 6:56 pm

Is there case law on this?
Last edited by kellyfrost on Sat Jan 27, 2018 3:22 pm, edited 1 time in total.

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LaLiLuLeLo

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Re: Smart to purchase bar review course Fall of 3L for tax benefits?

Postby LaLiLuLeLo » Tue Nov 15, 2016 7:36 pm

You are also assuming your firm will process the reimbursement quickly. That isn't always the case. I think my reimbursements took 4-5 months. If you're doing it fall of 3L it could very well spill over to the next year.



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