- 7 - Prior to 1987, section 1.162-5(d), Income Tax Regs., specifically provided that an individual traveling away from home primarily for educational purposes could properly deduct expenditures for travel, including meals, and lodging under section 162. However, in the Tax Reform Act of 1986, Pub. L. 99- 514, 100 Stat. 2118, section 142(b) of that act expressly overruled section 1.162-5(d), Income Tax Regs. In particular, section 142(b) of the Tax Reform Act of 1986 added section 274(m)(2) and provides that "No deduction shall be allowed under this chapter for expenses for travel as a form of education." Section 274(m)(2) is effective for tax years after 1986. No regulations have been promulgated with respect to section 274(m)(2). However, the legislative history of this provision gives significant insight as to the intent of Congress in enacting section 274(m)(2). In H. Conf. Rept. 99-841, (Vol. 2) at II-30 (1986), 1986-3 C.B. (Vol. 4) 1, 30, the explanation for this legislation is as follows: Educational travel.--No deduction is allowed for costs of travel that would be deductible only on the ground that the travel itself constitutes a form of education (e.g., where a teacher of French travels to France to maintain general familiarity with the French language and culture, or where a social studies teacher travels to another State to learn about or photograph its people, customs, geography, etc.). This provision overrules Treas. Reg. sec. 1.162-5(d) to the extent that such regulation allows deductions for travel as a form of education.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011