New Insurance Agent & Deductions

ProSeries

So I have a new client that used to work W-2 status for a business management firm (as an office manager). Client left that job to pursue something new - Insurance Agent. Client paid for study materials, took classes, and paid license/registration fees.

Now that I know, state licenses and the education/training is NOT deductible since client paid for it BEFORE becoming an agent. The licenses and continuing education could be deductible now that they are in the business....

Client is insistent everything paid for to become an insurance agent is deductible. Any thoughts? Am I missing something here? (P.S. single client filing with standard deduction)

Thanks!

FWIW, I've always found that showing the IRS publications to 'clients with misinformation or misconceptions about tax rules' is a very effective way to deal with them. I only print the pertinent section but always include the IRS cover of the pub.

After explaining why they can't take a deduction, I always tell them what they can and will be able to deduct; suggesting record keeping methods so that they are prepared if their 'future' deductions are ever challenged.

I own an insurance agency and newly licensed producers/agents (who have just sat through state licensing requirements, where they also hear about severe penalties, fines, and suspensions) are generally anxious to do things correctly.