- 10 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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