George W. Warren and Florence J. Winterheld - Page 8

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          lead” petitioner to qualify for a new trade or business.9  Sec.             
          1.162-5(b)(3)(i), Income Tax Regs.                                          
               It may be all but impossible for a taxpayer to establish               
          that a bachelor’s degree program does not qualify the taxpayer in           
          a new trade or business.10  See Malek v. Commissioner, T.C. Memo.           
          1985-428.  We stated in Carroll v. Commissioner, 51 T.C. 213, 216           
          (1968), affd. 418 F.2d 91 (7th Cir. 1969):                                  
               Millions of people must secure a general college                       
               education before they commence their life’s employment,                
               and it is generally accepted that obtaining such                       
               education is a personal responsibility in preparing for                
               one’s career. * * * Though his perseverance is to be                   
               admired, we do not believe that he should receive tax                  
               deductions not available to those who complete their                   
               general college preparation before beginning their                     
               career.  Furthermore, a general college education has                  
               more than economic utility.  It broadens one’s                         
               understanding and increases his appreciation of his                    
               social and cultural environment.                                       

               9  In Glasgow v. Commissioner, T.C. Memo. 1972-77, affd. 486           
          F.2d 1045 (10th Cir. 1973), we allowed an ordained minister to              
          deduct the expenses involved in gaining an undergraduate degree.            
          The opinion notes that, as a general proposition, the costs of an           
          undergraduate college education are not deductible, but that an             
          exception was warranted under the circumstances involved in the             
          case.  The case was decided under the 1958 regulations.  See                
          supra note 8.  These earlier regulations were subjective and                
          stressed the “primary purpose” for a taxpayer’s educational                 
          expenditures.  As a result, an educational expenditure which                
          qualified a taxpayer for a new trade or business would not be               
          disallowed as an ordinary and necessary business expense                    
          deduction unless the education was undertaken primarily for the             
          purpose of obtaining a new position.                                        
               10  We note that the regulations deal specifically with                
          “teaching and related duties”.  Sec. 1.162-5(b)(3)(i), Income Tax           

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