schedule C

you can't deduct the entire cost of the laptop under section

179 if you have no income ___________________________________

-----> real address on hobokeni or hobokenx

Wow - where to start.

You are not in business - YET. No deduction possible. Perhaps a start up expense requering (SP?) capitalization and amortization beginning when you begin business. As an aside sir. There are so many very basic issues here that I would strongly suggest you have a few more years experience before you open your own practice. I now remember why I waited until I had 10 years experience before I opened my own practice and I still was not fully prepared. I was an audit manager for an international firm at the time and still recall the nightmares that doing individual taxes caused me. I am sure that somewhere out there (and I am sure many will agree) is some sort of malpractice I committed unknowingly. Actually, with the complexity of the IRC I still may be committing malpractice and not know it. I guess that is why running/owning a CPA firm is called practicing. We keep practicing until we fianlly get it right and then we retire. After 25+ years I guess I'll keep practicing for awhile. Hope that this helps.

Regards,

Mark Rigotti, CPA (and still trying to get it right - all the time)

You don't have a Schedule C activity which means you don't have a business expense to deduct. Costs related to education that qualifies you for a new trade or business aren't deductible business expenses anyway.

Think of how you would answer this question if it were on the CPA exam and it meant the difference between pass and fail.

Answer: Even if you had a Schedule C, your laptop would not be deductible because you "exclusively use to study for the CPA exam" and expenses related to licensure/certification are generally only deductible for academics "et d'autres taureau merde artistes".

Do not include the French on the exam.

Dick

You should check out the Regs for Section 162 (Specifically, Treas. Reg. 162-5) and the resulting tax cases. You will have to determine whether you are in the business of being a CPA and/or financial planner and when that began. Generally expenses incurred prior to entering the profession or that qualify you for a new profession are not deductible as ordinary business expenses. But, since financial planning has no specific requirements (i.e., you could have no formal education and no work experience and be able to hold yourself out as a financial planner, you might be able to argue that you were in that business of being a financial planner prior to to taking the CPA exam and that you purchased the laptop in furtherance of that profession (which is a hard argument if you bought it to take the CPA exam, which would qualify you for another profession)). It will depend on your facts though.... You will recall the case last year where the MBA student was able to successfully argue that he was already in the business; therefore, he was entitled to deduct his MBA expenses.... As far as a current deduction, well, you will want to review Section 179 to find that answer. With regard to the 3 of 5 rule that you cite, you will find that that is in section

183 (and it only creates a presumption, which can be negated). Best of luck with your new career. I hope you find it as rewarding as the rest of us do.... Kind regards,

Kreig Mitchell

Many of us expensed all or part of our graduate education as Continuing Professional Education. When I started grad school, I had four professional certifications by examination and wrote off four courses a year plus books and pro-rated fees as CPE. Because my wife was a Certified Internal Auditor and had a job as an Auditor, we were able to write off 21 semester hours of Accounting credits, And yes, if you are a manager, you can write off part to all of the cost of an MBA.

But the OP wants to write off a laptop "used exclusively for CPA exam preparation". That's both a quantum leap and a no-way-Jose. To prevail upon audit, he'd have to deny what he has written here and that's somewhere between bad karma and perjury.

And then we get to his non-existent business for which this computer is clearly a start-up cost.

Dick

Aaron, please pay attention to what Mr.Mark Rigotti is saying. It is an outstanding advice.

Gosh,

I'm really blushing now.

Mark

With all due respect one can write off most anything they want. That does not mean one should have. I don't think it is quite so clear as you make it to be. I would be especially skeptical of the because you are a manager you can write off part to all of the cost of an MBA. Most of these types of situations are maybe, it depends, etc. Probably would run about 50-50.