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credit. Following the program, petitioner became an investment
banker whose focus was on various secured financing strategies.
While there is certainly a degree of overlap between the
positions he held before and after the M.B.A. program, when
petitioner left his position in Beijing he did not express an
intent to return to that position after he earned the M.B.A., nor
did he know where he would be employed following the completion
of the program. The connection between the M.B.A. program and
petitioner’s potential employment following the program was too
tenuous at that time for the education to be considered as having
maintained or improved skills required in that employment. See
generally Schneider v. Commissioner, T.C. Memo. 1983-753
(taxpayer not carrying on a trade or business within the meaning
of section 162(a) where he resigned his commission from the Army
in order to pursue an M.B.A. and another degree with no intention
of returning to the Army).
Because the education petitioner obtained in the M.B.A.
program did not serve to maintain or improve skills required in
petitioner’s employment, petitioner is not entitled to a
deduction pursuant to the first category of deductible expenses
under section 1.162-5(c)(1), Income Tax Regs.
The second category of deductible expenses is for education
which meets the express requirements of the individual’s employer
or of applicable law or regulations. Sec. 1.162-5(a)(2), Income
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