Will M. McEuen III and Tracy L. McEuen - Page 6

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          Spring Industries is a manufacturer of home furnishings.                    
          Petitioner was hired into the "General Management Program"                  
          (program).  Candidates for the Spring Industries program were               
          required to have an M.B.A. or equivalent.  As described by Spring           
          Industries, the program "is a proving ground for future top                 
          executives" and "prepares associates for careers in marketing,              
          finance or operations management."  When petitioner completed the           
          program with Spring Industries, she became an "associate brand              
          manager".                                                                   
               On their joint Form 1040, U.S. Individual Income Tax Return,           
          for 1998, petitioners deducted on Schedule A $20,317 for                    
          "REQUIRED EDUCATION" (having reduced $21,125 by $808, 2 percent             
          of reported adjusted gross income).                                         
                                     Discussion                                       
               The Court decides this case on the preponderance of the                
          evidence, regardless of the allocation of the burden of proof.              
          Section 74911 is therefore inoperative.                                     
               Petitioner argues that she was employed as an "investment              
          banker" with the M-L and James companies, having the job title              
          "financial analyst".  She did not abandon her trade or business             
          as an "investment banker" by attending Kellogg for 2 years, she             


               1Sec. 7491 is effective with respect to court proceedings              
          arising in connection with examinations by the Commissioner                 
          commencing after July 22, 1998, the date of its enactment by sec.           
          3001(a) of the Internal Revenue Service Restructuring and Reform            
          Act of 1998, Pub. L. 105-206, 112 Stat. 726.                                




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