Exam fees, Dr rotation exp deductible?

[KenB]

Client is a Doctor (I wouldn't go to him though), stopped teaching medicine last March. and will be Doctoring again sometime this year, he says?

From March to Dec of 2006:
Paid $2,250 for Med Exams & practice exams, even though not working now, but probably will be down the road is this deductible?

Paid $2,500 to do Med Rotations, since not working, deductible?

On above Med Rotations, traveled to Chicago for the 3 months and spent $6,700 for lodging expenses, etc..., deductible?

This last one is good, on Med Exams, hired Attorney to contest exam procedures, paid $6000, deductible?

Any references would be greatly appreciated.

Thanks, Ken

[Kram BergGold]

My view

There may be two issue in your question. Your client seems to be changnig from a MD who has been a teacher to an MD who will be practicing. I am not going to broach this issue. The other issue is not working April 2006 on. My understanding is you can deduct business expenses if the period of non work is not too long. My feeling about how long is too long is it is a facts and circumstances thing. Under 1 year I would say always ok. 1-2 years probably ok. After 2 years it starts to get dicey and you have to use your best judgement.

[ChEAr$]

another case

So then, if I used to be a college professor teaching taxes (and accounting), and
now I decide that "those who can, do; and those who can't teach", and therefore make
a career change. Now in October (after quitting teaching in May) I go take the IRS
EA exam in order to enhance my status so that when I open my tax office in January I'll
have "EA" after my name.

May I then deduct traveling costs to Atlanta, or whereever, and the IRS exam fee in order
to take the EA exam?