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Because the parties agree that the MBA improved petitioner’s
skills, we focus on whether the MBA met the minimum education
requirement of Selane Products or qualified petitioner for a new
trade or business. In other words, petitioner’s MBA-related
expenses are not deductible if the MBA was a condition precedent
to his employment. Nor are the expenses deductible if the MBA
qualified petitioner for a new trade or business, regardless of
his intent to enter a new trade or business, and regardless of
whether his duties significantly changed after he obtained the
MBA. Robinson v. Commissioner, 78 T.C. 550, 556-557 (1982);
Bodley v. Commissioner, 56 T.C. 1357, 1360 (1971); Jungreis v.
Commissioner, 55 T.C. 581, 591 (1970); Schwerm v. Commissioner,
T.C. Memo. 1986-16; sec. 1.162-5(b)(1), Income Tax Regs.
1. Whether the MBA Met Minimum Education Requirements of
Selane Products
Determining whether an employee meets the minimum education
requirement typically means that an employee must have a
particular degree before being hired or obtain the degree within
a certain period after being hired. See sec. 1.162-5(b)(2)(iii),
Examples (1), (2), and (3), Income Tax Regs. Here, respondent
argues that Selane Products had a minimum education requirement,
not for petitioner to begin employment but for petitioner to be
promoted after he was hired, and that requirement was for
petitioner to obtain an MBA. We disagree.
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