- 8 -
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.
While the statute expressly overrules section 1.162-5(d),
Income Tax Regs., the report makes no mention of section 1.162-
5(e), Income Tax Regs., which provides, in part, for the
deductibility of a taxpayer's travel expenses if the primary
purpose of the travel is to engage in activities that themselves
represent deductible education expenses. A report from the House
of Representatives Committee on Ways and Means provides
additional insight into the rationale underlying section
274(m)(2) and further indicates that Congress intended to leave
intact the provisions for deductibility under section 1.162-5(e),
Income Tax Regs.:
The committee is concerned about deductions claimed for
travel as a form of "education". The committee
believes that any business purpose served by traveling
for general educational purposes, in the absence of a
specific need such as engaging in research which can
only be performed at a particular facility, is at most
indirect and insubstantial. By contrast, travel as a
form of education may provide substantial personal
benefits by permitting some individuals in particular
professions to deduct the cost of a vacation, while
most individuals must pay for vacation trips out of
after-tax dollars, no matter how educationally
stimulating the travel may be. Accordingly, the
committee bill disallows deductions for travel that can
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011