Deducting Becker Review Materials…

  • Creator
    Topic
  • #187628
    josephva
    Member

    Hi Everyone,

    I know the consensus on deducting CPA review materials is (for the most part) a big no, as it is considered to be “a minimum job requirement” for public accounting, but I would like to suggest that this is not necessarily the case for some individuals – keep in mind that I’m not encouraging anyone to take an illegal tax position, I just want to bounce some ideas around. I am starting at one of the big four next fall, and I’m doing a little tax research because I know that the costs of Becker (covered by firm) will be showing up on my W2.

    If the deduction is dismissed on the grounds that it is a “minimum job requirement” for those individuals working at the big four in public accounting (tax or audit), then the argument is flawed in a sense. Although the big firms provide a bonus for passing the CPA exam within the first two years, it is not a requirement for those years (just strongly incentivized). In addition, consider the turnover rate during those years – most people don’t stick around for more than 2-3 years before they steer clear of public accounting for good.

    So, can the costs of pursuing a CPA license really be considered “a minimum job requirement” for everyone?

    I just finished reading about the employer paid education expenses (exclude from income up to $5,250 per year) while studying for REG and it sparked my interest. By no means am I some tax expert, I just thought it would be an interesting discussion amongst all of us CPA candidates!

    FAR (7/19) - 91
    REG (8/30) -
    BEC (10/01) -
    AUD (11/20) -

    Review Materials: Becker - Online and Flashcards

Viewing 10 replies - 1 through 10 (of 10 total)
  • Author
    Replies
  • #585684
    jrd56202
    Member

    I'm studying Reg right now too and was wondering the exact same thing! I'm interested to find out.

    BEC-72
    AUD-71, Retake 8/28/14, 85!
    FAR-64
    REG-72

    #585685
    san4596
    Member

    This has been covered on multiple threads. CPA review materials and exam fees are not deductible by any means.

    Here's a link to one of the many threads:

    https://www.another71.com/cpa-exam-forum/topic/are-cpa-exam-study-related-expenses-tax-deductable

    CPA EXAM: DONE!!!!
    Ethics Course: Passed
    Application Mailed: 3/16/15
    Professional Conduct Exam: 97
    Certification Date: 4/2/15!!!

    #585686
    Anonymous
    Inactive

    I'm not so sure it is the idea of being a minimum job requirement that is the hangup. I think it is the fact that the CPA qualifies you for a new trade or business which makes it non-deductible. Because I would have a hard time arguing that the license won't qualify me for bigger and better things 😉

    Just a thought.

    #585687
    Anonymous
    Inactive

    Amanda hit the nail on the head.

    Doesn't matter anyway. If you're just tarting work, you most likely are taking the standard deduction making this a dead horse.

    **Edited by Kricket**

    #585688
    josephva
    Member

    Thanks for your input, everyone! It's fun to contemplate these rules. Surely, I won't forget this rule on the REG exam coming up… and my tax return…

    FAR (7/19) - 91
    REG (8/30) -
    BEC (10/01) -
    AUD (11/20) -

    Review Materials: Becker - Online and Flashcards

    #585689
    josephva
    Member

    **Edited by Kricket**

    FAR (7/19) - 91
    REG (8/30) -
    BEC (10/01) -
    AUD (11/20) -

    Review Materials: Becker - Online and Flashcards

    #585690
    klink24
    Participant

    **self-edit** although the brief exchange was hilarious, lol

    FAR: 4/19/2014 - 85!
    AUD: 5/27/2014 - 90!
    REG: 7/18/2014 - 81!
    BEC: 8/13/2014 - 84!

    4 up, 4 down, in 4 months.

    Licensed 9/22 in NC.

    #585691
    thechapman
    Member

    Are you talking about paying for Becker yourself, or are you talking about the bonus you receive as a result of passing all four sections? If you're Big 4, you shouldn't be paying for Becker in the first place…

    Passed - 2014

    #585692
    josephva
    Member

    They covered the cost of Becker for me, and they will be including the cost in my income when I start next year. I'm not referring to the bonus, just the Becker review materials

    FAR (7/19) - 91
    REG (8/30) -
    BEC (10/01) -
    AUD (11/20) -

    Review Materials: Becker - Online and Flashcards

    #585693
    Anonymous
    Inactive

    Remember that we are here to support each other and learn from each other. Condescending, inflammatory, degrading and rude comments will be edited or deleted.

Viewing 10 replies - 1 through 10 (of 10 total)
  • You must be logged in to reply to this topic.