Friday, March 27, 2009

No Noose Is Good News

Via ATL, there are reports of outside firms that are not at the top of the Vault rankings opening up shops here in L.A. to capitalize on the lawyers now available on the market. Just a few weeks ago, I wrote, "Someone asked if this presents firms 'lower' down the food-chain with an opportunity to upgrade to say former L&W or Orrick associates. I did some thinking on this and asked around a bit. Tentatively, I don't think so."

The latest news appears to directly contradict that, which is fine by me. At least there are now signs that the legal job market is not completely lifeless. I hope this augurs well for any Boalties (and anyone else) out there affected by this mess.



Anonymous Anonymous said...

Leave it to N&B to teach me that I can use "augur" as a verb.

3/27/2009 3:38 PM  
Blogger Armen said...

Bonus lesson is gratuitous.

3/27/2009 3:44 PM  
Anonymous Anonymous said...

I have a question for people who have taken tax. If my firm gives me an $X loan, and I don't start work until 2010, is that loan taxable in 2009 or 2010?

3/27/2009 11:46 PM  
Blogger Armen said...

It's not taxable, period, unless it's below market interest.

3/27/2009 11:48 PM  
Anonymous Anonymous said...

How do you figure out what market interest is?

3/28/2009 8:37 AM  
Blogger Patrick said...

The current federal rates are here, but I doubt you loan requires special tax treatment.

3/28/2009 9:43 AM  
Blogger McWho said...

since it is interest free, that would be 'below market.'

3/28/2009 3:00 PM  
Blogger Patrick said...

Um, where did anyone say it was interest free?

3/28/2009 3:01 PM  
Blogger McWho said...

Do firms charge interest? I thought that generally firm salary advances/loans are interest free. I could be wrong on that, since I am not getting one.

3/28/2009 6:59 PM  
Blogger Armen said...

Oh I forgot about a $10,000 exception to the below market loan. The Big Rakowski would borrow $10K from his firm interest-free, invest it, and then collect and pay the loan back. Rinse, lather, and repeat. Gotta love SMAL (his nickname at Harvard...ask him what it stands for).

3/28/2009 7:04 PM  
Anonymous Anonymous said...

Why don't you just let us know what it stands for?

3/28/2009 10:43 PM  
Anonymous Anonymous said...

My firm gave me a salary advance. There was no interest and I pay it back out of my after-tax earnings.

3/29/2009 10:18 AM  
Anonymous Anonymous said...

Finally -- a N&B thread for tax advice! I have a question that might be relevant to a few recent grads:

Last year, I sold all my used law books on Amazon, generating about $1000 in cash.

This is of course not a "profit," b/c I bought them all new over the past three years and sold them used for less, but do I still have to report something special to the IRS? Like a Schedule C -- or anything at all?

I don't have the receipts from the original purchases, but as a matter of market logic there's no way I sold them for MORE than I paid for them (and I could probably track down original prices if I really needed to), so there's no real income here -- just me recouping (part) of my ed expenses.

But you never know with the IRS.

Thanks N&B community!

3/29/2009 11:15 AM  

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