Lawyer Taxes Expenses

Below is a list of professional expenses commonly incurred, and deducted, by professionals practicing law. Remember, to be deductible, an expense must be both "ordinary" and "necessary" in connection with your profession.

Item	IRS PUB	Deductible	Non-Deductible
Automobile expenses	917	The portion of automobile expenses incurred while driving between two different workplaces, or between your principal residence and a temporary job site. You can base the deduction on actual expenses incurred or on the standard mileage rate of $.405 per mile through 8/31/05 and $.485 per mile between 9/1/05 and 12/31/05.	The portion of automobile expenses incurred while commuting between your principal residence and a regular place of business.
Beepers and pagers	529	The rental fees paid by you for beepers and pagers used in connection with your employment	Any costs associated with the personal use of these items.
Books/library	534	The cost of reference books purchased during the year. You can also depreciate your "library" the first year you put it into business use, based on the fair market value of the library on that date.	Any books not related to your profession
Cellular phones	534	The business portion of the cost of the cellular phone can be expensed. Plus, you can deduct the business use portion of the monthly cellular phone bills.	Any portion of the cost of the cellular phone and the monthly cellular phone bills relating to personal use.
Computer purchases	534	Depreciation on the business use percent of any computer or peripheral purchased (1) as a requirement of your employment and (2) for the convenience of your employer.	Any computer and peripheral not specifically purchased as a requirement of employment or for the benefit of your employer.
Education, examinations and licenses	508	Expenses incurred that are required as part of your employment and maintain or improve your skills in your current profession, such as an LLM or continuing education courses.	Expenses incurred that prepare or qualify you for a new trade or business, including law school.
Gifts to Clients	463	Gifts with a value of less than $25 given to clients, prospects, or referral sources.	Birthday and wedding gifts given to colleagues and clients.
Home office	587	The percentage of your home (based on square footage) used regularly and exclusively in connection with your profession. Great for renters since rent isn't otherwise deductible on your federal tax return.	The portion of your home used for any non-business purpose during the year, even if just for one day.
Insurance	529	Errors and omissions insurance and insurance on business assets.	Health, life and disability insurance. Health insurance is deductible as an "adjustment to income" if you have net self-employment income.
Interest on school loans	535	Up to $2,500 of student loan interest paid during the year, subject to income limitations, is deductible as an "adjustment to income".	Interest on school loans in excess of $2,500 per year.
Job search	529	Expenses associated with finding a new position in your current trade or business.	Any expenses associated with finding your first job, or a job in a new trade or business.
Meals and entertainment	463	50% of the cost of a meal when there is a specific business purpose in connection with the meal, or while temporarily traveling on business.	Personal meals, including meals while working late in the general vicinity of where you live.
On-line Services	463	Internet access, website design and maintenance, and other on-line tools to help you in your profession.	Personal e-mail accounts, and other personal use of the internet.
Parking and tolls	463	Parking and tolls incurred in connection with traveling between two different workplaces or between your principal residence and a temporary job site.	Parking and tolls incurred in connection with commuting between your principal residence and a regular place of business.
Professional dues, journals and subscriptions	535	Fees paid to join professional organizations or to subscribe to their journals.	Dues paid to social or athletic clubs.
Supplies	535	Supplies needed for your practice.	Supplies that don't fall within the definition of "ordinary" and "necessary" for a professional in your field.
Temporary job assignments	463	The travel, lodging, and 50% of the cost of the meals incurred during a job assignment outside the general vicinity of where you live. The position must last for less than one year, and you must intend to return to the city that you were living in prior to the job assignment.	Any expense associated with a job outside the general vicinity of where you live that will last for more than a year, or for an unspecified length of time.
Travel and lodging	463	Travel and lodging expenses incurred while outside the general vicinity of your residence in connection with a deductible activity.	Travel and lodging incurred when the primary purpose of the trip is not business related.
Uniforms and cleaning	529	The cost of purchasing and cleaning clothing required by your employer that isn't considered "everyday street clothing".	Items such as suits, shirts, shoes, ties and wristwatches because they fit the description of "everyday street clothing".

IRS Pub indicates the IRS Publication that contains information on this topic. You can access the IRS Pubs at www.irs.gov.

How you deduct your allowable unreimbursed professional expenses depends on how you were compensated during the year: