- 6 -
record and relying to some extent on the GE account statement
described, concludes that the equivalent 6.6524 shares (one-half
of 13.304 shares) petitioner owned on October 26, 1994, had a
basis of $50.5625 per share, the amount paid for the stock
transaction of January 25, 1995. Cohan v. Commissioner, 39 F.2d
540 (2d Cir. 1930). Therefore, petitioner's basis for the 13.304
shares converted into cash on May 19, 1997, is $336.36 (6.6524
shares at $50.5625 per share). The Court so holds.
In his petition and at trial, petitioner claimed he should
be allowed an itemized deduction for educational expenses under
section 162(a). During 1997, petitioner attended the University
of California at Los Angeles (UCLA). He graduated from UCLA with
a master's degree in business administration (MBA) in June 1998.
Prior to his enrollment at UCLA, petitioner was employed in the
telecommunications industry. He realized, as he stated in a
written statement offered in evidence, that "I needed additional
accounting, financial, and general business administration skills
as I was increasingly called upon to negotiate complex contracts
with a wide variety of clients." The MBA degree, petitioner
felt, would provide him with that expertise. At trial,
petitioner agreed that the MBA degree qualified him for "a wider
variety of positions", although he did not pursue such positions.
The amount claimed by petitioner for his educational expenses is
ambiguous. He testified that he borrowed $10,000 to finance his
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011