Is this a business expense?

Sure.

In general, a first professional license is not deductible, but renewals are.

If the cost of the first is the same as the cost of the renewals and for the same term, I disagree. It's a regularly recurring cost.

I think Mr. Kamlet is confusing an educational expense with a general business expense, in that the former is deductible only for a current profession when it doesn't qualify one for a different job.

Well, the fee for my initial dental licensure was $250. It costs $150 to renew. So it sounds like it is not deductible?

martin lynch wrote: ...

That's IRS Pub 529 on the subject

As a lapsed/former PE, I didn't know the proscription when filing first time nearly 40 years ago, if it was so then as well. I've just learned of it in this thread, in fact, so I'd have thought it would have been an obvious business expense but lo! obviously not at least for the first go. I fail to see the "why", though...

You don't ask Why? The answer is Because.

For those not adventurous to search the link it says

Begin Quote

Professional Accreditation Fees

You cannot deduct professional accreditation fees such as the following.

• Accounting certificate fees paid for the initial right to practice accounting.

• Bar exam fees and incidental expenses in securing initial admission to the bar.

• Medical and dental license fees paid to get initial licensing.

End Quote

Art, does Treasury send you a 1099 at the end of the year?

...

I understood/understand that -- it was intended as a rhetorical "why" as a comment, not a question.

... [elided for brevity]

That's the quote I had just pasted from the link, yes...

Certainly it's nice to know why. My guess is that if they allowed the deduction, people would attempt to enter a new field, take a deduction for education and licensing, and then find it doesn't work for them, and yet they would have a deduction for a business that never took off. Well, I don't see anything wrong with it, because they tried (and failed). Maybe the politicians were trying to close a loophole when they passed this law. Who knows? History is tough to research on google.

What if you practice accounting for your first year without a license or without taking courses. When you buy a license for your second year of business or purchase some classes, is the license fee or education deductible?

IF indeed, US Treasury paid Art more than $10 in interest, of course.

ChEAr$, Harlan Lunsford, EA n LA

however i doubt that Art would be lending our government any money.

There are some interesting thoughts on the subject.

If someone was already an accountant but finally passed the CPA exam AND after working for slave wages for another CPA for the required period of time, then obtained his initial CPA license from the state, IRS would maintaint that he is now in a NEW trade or business. Same for a paralegal who passed the bar exam and then paid initial state bar fees for full 'license' to ... to... well, do whatever it is lawyers do.

As for me, I was a tax preparer before I passed the EA exam way back when (don't ask), so when I paid IRS my initial $25 fee, I deducted same, since my profession did not change atall; only my prestige.

ChEAr$, Harlan Lunsford, EA n LA

The IRS 1099-INT which might not even be called that, does not contain the usual box numbers.

And I've seen more than one AARP client who used consumer tax software only to answer an interview question about the Interest paid by IRS on refunds and somehow exclude that interest from Ohio Income as if it was from Treasuries or Savings bonds :-(

Idon't like to admit it, but I did have a refund this year.

Who knew a year ago that I'd have a capital loss?

OH the humanity of it all! a RE FUND! gasp!

Like I tell clients talking about their 401k's losses; you get no sympathy on this side of the table! (grin)

(Is it over yet? sigh. No, one more day. sigh. Why did they wait till the last minute this year? sigh.

ChEAr$, Harlan Lunsford, EA n LA