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under section 162 and section 1.162-5, Income Tax Regs., as
business expenses. See sec. 1.262-1(b)(9), Income Tax Regs.
Objective criteria for distinguishing between business expenses
and personal expenses are set forth in section 1.162-5, Income
Tax Regs. See Boser v. Commissioner, 77 T.C. 1124, 1128-1129
(1981), revised 79 T.C. II (1982), affd. without published
opinion (9th Cir., Dec. 22, 1983); McCulloch v. Commissioner,
T.C. Memo. 1988-84.
Before 1987, section 1.162-5(d), Income Tax Regs.,
specifically provided that expenditures for travel as a form of
education could properly be deducted under section 162 to the
extent the travel was directly related to the duties of the
individual in his or her employment or other trade or business.
This regulation, however, was expressly overruled for years
beginning after 1986 by the enactment of section 274(m)(2). See
Tax Reform Act of 1986, Pub. L. 99-514, sec. 142(b), 100 Stat.
2118. Section 274(m)(2) provides that "No deduction shall be
allowed under this chapter for expenses for travel as a form of
education."
Although no regulations have yet been promulgated under
section 274(m), its legislative history offers insight into
congressional intent 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 legislation was explained as follows:
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