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Amortization of the Costs of Obtaining Additional Bar Admissions under Section 197

Abstract

Under Sharon v. Commissioner and the prior law, the noneducational costs of obtaining additional bar admissions by a fairly young practicing attorney could only be amortized over the lengthy remaining life expectancy, this would usually produce only an insignificant annual deduction. With the advent of new I.R.C. § 197 in 1993 generally allowing the amortization of intangibles over only a fixed 15-year period, however, that situation has now changed. Professor Andrews analyzes section 197 in the context of qualified additional bar admission costs. He concludes that, although it is not the usual application of that provision, section 197 nonetheless clearly applies to such costs, thus creating substantially more worthwhile annual deductions.

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37 Ariz. L. Rev. 501 (1995)

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Authors

Arthur W. Andrews (University of Arizona)

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