Tax Deductions for Attorneys in California

Home Office & Office Expenses

California attorneys who maintain a home office used exclusively and regularly for client meetings or administrative work can deduct home office expenses. The regular method deducts actual expenses (mortgage interest, utilities, insurance) proportional to the office square footage. The simplified method deducts $5 per square foot up to 300 square feet ($1,500 maximum). For attorneys with a dedicated client meeting room at home, the regular method typically produces a larger deduction.

Office rent, furniture, equipment, and supplies used in your law practice are fully deductible. Bar association dues, court filing fees, legal research subscriptions (Westlaw, LexisNexis, Clio), and case management software are all deductible business expenses.

Malpractice Insurance

Professional liability (malpractice) insurance premiums are fully deductible as a business expense. California attorneys are not required to carry malpractice insurance, but most do — and the premiums can be substantial. Deduct 100% of the premium on Schedule C (sole proprietor) or as a business expense on the entity return (S corp, partnership). General liability, cyber liability, and employment practices liability insurance premiums are also fully deductible.

CLE & Professional Development

California attorneys must complete 25 hours of Continuing Legal Education (CLE) every three years (including 4 hours of ethics). CLE course fees, materials, and travel to CLE events are fully deductible. Bar association membership dues (State Bar of California, local bar associations, specialty bar associations) are deductible. Legal publications, treatises, and research databases are deductible. Law school tuition is not deductible if you are entering the legal profession for the first time, but advanced legal education that maintains or improves skills in your current practice area may qualify.

Vehicle & Travel

Business mileage to court, client offices, depositions, and other business locations is deductible at 70 cents per mile (2026 IRS rate). Commuting from home to a regular office is not deductible. If you travel to another city for a case, airfare, hotel, and 50% of meals are deductible. Document all business travel with a mileage log or travel records showing the date, destination, business purpose, and miles driven.

Retirement Plans for Attorneys

Self-employed attorneys can contribute up to $70,000 per year to a SEP-IRA or Solo 401(k) (2025 limits). A defined benefit plan can allow contributions of $100,000–$300,000+ per year for attorneys over 50 with high income. These contributions are fully deductible and reduce both federal and California income tax. KDA designs retirement plans that maximize deductible contributions for California attorneys.

California-Specific Rules

California does not conform to the federal QBI deduction — California attorneys operating as pass-through entities do not get the 20% QBI deduction on their California return. California also does not allow bonus depreciation. The California PTET election is available to attorney partnerships and S corps and can save significant federal taxes by making California income tax deductible at the entity level.