Ginny is an accountant by trade, she paid $1,000 each year to join as CPA member....

Ginny is an accountant by trade, she paid $1,000 each year to join as CPA
member. She also has a knack for programming; hence she also joins the
Computer Associates membership for $500 per year as she planned to find a new
career as a programmer. Discuss her eligibility whether she can deduct both
membership fees from her assessable income!

Book: Taxation law

Solutions

Expert Solution

In this case Ginny will be eligible to deduct the $1,000 that she has paid each year to join as CPA
member.

However she will not be eligible to deduct $500 that she has paid per year towards the Computer Associates membership.

This is because as per IRS’s guidelines dues paid to a professional association are tax-deductible if membership in the association assists you in performing your job. Here Ginny is a practicing accountant and hence it can be said that her CPA membership is allowing her to get important information on new accounting related topics and new developments. Ginny is not yet a programmer and she is merely planning to find a new career as a programmer. Hence programming is not part of her profession yet and hence she will not be allowed to deduct the $500 fees paid for Computer Associates membership.

ekkarill92 answered 2 years ago

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