SE Health Insurance Premium

[ILLMAS]

TP is an attorney who decided to move to a different state, most of 2010 he was studying to take the bar exam in the new state he lives, so he only had a very small amount of revenue. For example he made about 3K in revenue, and he had about 4K in expenses, exam fees and review courses pretty much ate the revenue, then he has about 3K in self-employed health insurance, is he still able to deduct it? Number one he wasn't taking new clients because he cannot practice in his current state of residency, secondly the income was mostly for fees not collect in prior years. SE insurance deductible yes or no? To it seems it isn't because he really didn't try to generate revenue because he was studying most of the time.

Thanks

[grandmabee]

you have to show a profit on the C to use the SE insurance. He can take on A under medical

[jainen]

>>he really didn't try to generate revenue <<

In my opinion he was not actively conducting a trade or business during the time he could not legally practice. Therefore his expenses are not deductible, or at least must be capitalized. Nevertheless, his SE insurance deduction is supported by the old collections, which are clearly self-employment income.