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prove by a preponderance of the evidence that he qualified for
the claimed deductions.11
B. Whether Petitioner May Deduct His MBA Educational Expenses
We first determine whether petitioner’s MBA-related expenses
qualify as deductible business expenses. A taxpayer may deduct
all ordinary and necessary expenses paid or incurred during the
taxable year in carrying on a trade or business. Sec. 162(a).
Educational expenses, specifically, are deductible if the
education maintains or improves skills required by the individual
in his or her employment or other trade or business or meets the
express requirements of the individual’s employer. Sec. 1.162-
5(a)(1) and (2), Income Tax Regs.
No deduction is allowed, however, if the taxpayer’s expense
is for education that enables him or her to meet the minimum
educational requirements for qualification in his or her
employment or if the education leads to qualifying the taxpayer
for a new trade or business. Sec. 1.162-5(b)(2) and (3), Income
Tax Regs.
11The Commissioner’s determinations in a deficiency notice
are presumed correct, and the taxpayer bears the burden of
proving otherwise. Rule 142(a); Welch v. Helvering, 290 U.S.
111, 115 (1933). Deductions are generally a matter of
legislative grace, and the taxpayer bears the burden of proving
he or she is entitled to the claimed deductions. INDOPCO, Inc.
v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934).
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