Carlos is a 50-year-old native Spaniard who lives in the U.S. and is a naturalized US citizen and US taxpayer.He immigrated to the U.S. five years ago.In Spain, Carlos went to law school, was licensed as a lawyer and practiced law for 15 years before immigrating to the U.S.

In the U.S, Carlos has been working as a legal paraprofessional supporting attorneys giving legal advice.

Carlos has decided to become a licensed attorney in the U.S. (in Florida).He consulted with the Florida Bar Association and has determined that he must take some law school classes and take the Florida Bar Exam in order to qualify for licensure.Carlos has enrolled in classes at the St. Thomas University School of Law in Miami.

Issues:

1) May Carlos deduct the cost of his law school tuition as an ordinary and necessary business expense under Code section 162? (Please Help Answer)

2) If no deduction is allowed under Code section 162, may Carlos deduct and/or claim a tax credit for his law school tuition? (Please help Answer)

Conclusion:

1)

2)

Analysis:

Please help me answer 1 and 2, and provide analysis for answer.

MEMO RANDUM TO: Mary Walsh FROM: DATE: RE: Tax Treatment of Law School Tuition Facts: Carlos is a 50-year-old native Spaniard who lives in the U.S. and is a naturalized US citizen and US taxpayer. He immigrated to the U.S. five years ago. In Spain, Carlos went to law school, was licensed as a lawyer and practiced law for 15 years before immigrating to the U.S. In the U.S, Carlos has been working as a legal paraprofessional supporting attorneys giving legal advice. Carlos has decided to become a licensed attorney in the U.S. (in Florida). He consulted with the Florida Bar Association and has determined that he must take some law school classes and take the Florida Bar Exam in order to qualify for licensure. Carlos has enrolled in classes at the St. Thomas University School of Law in Miami. Issues: 1) May Carlos deduct the cost of his law school tuition as an ordinary and necessary business expense under Code section 162? 2) If no deduction is allowed under Code section 162, may Carlos deduct and/or claim a tax credit for his law school tuition? Conclusion: 1) 2) Analysis