Taxation Research

Benjamin Jones is a new staff accountant for Local Firm CPAs, LLC. Benjamin is taking a CPA exam review course to help him prepare for the exam. Benjamin is not reimbursed for the cost of the course ($2,500), but the firm expects him to take and pass the CPA exam.

Realizing that you have recently been hired by another local firm that specializes in tax accounting, Benjamin requests your advice on whether he may deduct the cost of the CPA Review Course on his federal income tax return for the year.

Research the tax law and write Benjamin a brief memo of no more than two pages, in which you communicate the results of your research. Use the format for communicating research findings discussed in Communication of Tax Research Results under Tax Research in Course Content for your memorandum. Identify relevant statutory, regulatory, and judicial authorities and discuss how these authorities affect your conclusion concerning the deductibility of Benjamin’s CPA exam review course expense.