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deduct $620 for the gift because $80 was attributable to services
rendered in the form of the dinner.
Deduction for Education Loan Interest
Before he commenced his studies at Columbia, petitioner
allegedly borrowed money from a Dutch bank to finance his
educational expenses. The loan was secured by the home of
petitioner’s parents, and his parents were guarantors on the
loan. EURO 6,197 was paid as interest in 2000, and the parties
agree that the dollar conversion is $5,329. Petitioner claims
that he is entitled to a deduction for education loan interest
under section 221.
Discussion
Section 162 Deduction for Educational Expenses
“Expenditures made by a taxpayer in obtaining an education
or in furthering his education are not deductible unless they
qualify under section 162 and � 1.162-5”. Sec. 1.262-1(b)(9),
Income Tax Regs.; see also Boser v. Commissioner, 77 T.C. 1124,
1132 (1981). Section 162(a) limits deductions for all “ordinary
and necessary expenses” to those incurred “carrying on any trade
or business”. The determination of whether a taxpayer is engaged
in a trade or business “requires an examination of the facts in
each case.” Higgins v. Commissioner, 312 U.S. 212, 217 (1941).
“[T]o be engaged in a trade or business, the taxpayer must be
involved in the activity with continuity and regularity and that
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