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who teach them are reviewed and approved by the appropriate
academic department on the University of California, Berkeley
campus, and the Committee on Courses of the Academic Senate.
Although petitioner did not complete the credit requirements, we
are satisfied that her participation in the courses was not
within the ambit of section 274(m)(2).
Having determined that the U.C. Extension courses were
educational activities beyond mere travel, we nevertheless must
determine whether petitioner's expenses meet the requirements for
deductibility under section 162. Expenditures made by a taxpayer
for education are deductible, with certain exceptions not
relevant here,2 if the education either: (1) Maintains or
improves skills required in an individual's employment or other
trade or business; or (2) meets the express requirements of the
individual's employer, or meets the requirements of applicable
law or regulations, imposed as a condition to the retention of
employment, status, or rate of compensation. See sec. 1.162-
5(a), Income Tax Regs. Petitioner's employer did not expressly
2 The parties agree that the U.C. Extension courses do not
meet the minimum educational requirements of petitioner's
employment. They further agree that the courses do not qualify
petitioner for a new trade or business. Thus, deductions
associated with the courses are not prohibited under sec. 1.162-
5(b), Income Tax Regs.
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