- 8 -
determination of value is based on two appraisals by qualified
real estate appraisers--one for $85,000 and the other for
$84,000. Petitioners have offered no evidence that these
appraisals do not reflect the fair market value of the property,
and we sustain respondent’s determination.
2. 1997 and 1988 Miscellaneous Deductions
Petitioners contest the disallowance of only two of the
purported deductions--vehicle and educational expenses. With
regard to the vehicle expenses, these expenses, as we understand,
arise from transportation to and from petitioner’s National Guard
drills, and, as such, are expenses incurred for commuting to and
from work. Such expenses are not deductible. See Commissioner
v. Flowers, 326 U.S. 465 (1946).
With regard to the deductions for educational expenses,
generally, expenses of obtaining an undergraduate degree are
considered personal expenses and, as such, are not deductible.
Sec. 262; see Baker v. Commissioner, 51 T.C. 243, 248 (1968).
The regulations, however, provide that the expenses are
deductible if the education “Meets the express requirements of
the individual’s employer, or the requirements of applicable law
or regulations, imposed as a condition to the retention by the
individual of an established employment relationship, status, or
rate of compensation.” Sec. 1.162-5(a)(2), Income Tax Regs.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011