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that in corporate literature, James describes its corporate
finance department as consisting of "23 investment bankers and
eight financial analysts". The Court concludes that associates
are among the "23 investment bankers" and that James did not
consider the financial analysts as having yet achieved the status
of "investment banker", even though in a broader sense they were
in the investment banking business.
At M-L, James, and in the investment banking industry in
general, during the years 1995 to 1996, an M.B.A. degree was
required to obtain a position as an associate, an investment
banker, with an investment banking firm. Because the expenses at
issue were incurred and paid by petitioner in order to obtain a
degree meeting the minimum educational requirements for
qualification as set by her employers and the industry in which
she was working, they are nondeductible personal expenditures.
See McCartin v. Commissioner, T.C. Memo. 1987-159; Antuna v.
Commissioner, T.C. Memo. 1977-435; sec. 1.162-5(b)(1), Income Tax
Regs.
Even if petitioner's M.B.A. was not the minimum education
requirement to be an investment banker, if the degree would "lead
to qualifying * * * [her] in a new trade or business", her
expenses are not deductible. Sec. 1.162-5(b)(3), Income Tax
Regs. This rule applies even though the studies are required by
the employer or applicable law, even though the taxpayer does not
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