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section 529(e)(3)(B)(ii) allows such expenses up to the minimum
amount included for room and board in the cost of attendance as
defined by 20 U.S.C. sec. 1087ll(3) (1998). Based on the
applicable law, room and board expenses are limited to $2,500
(the minimum amount for off-campus students).
We recognize that college and graduate students may incur
expenses beyond those projected by the educational institution.12
Congress, however, has imposed limitations on the amount of room
and board expenses that qualify for favorable tax treatment.
However unfair this statute might seem to petitioners, the Court
is bound to apply the law as written. See Estate of Cowser v.
Commissioner, 736 F.2d 1168, 1171-1174 (7th Cir. 1984), affg. 80
T.C. 783 (1983). Accordingly, we conclude that petitioners are
entitled to qualified higher education expenses for room and
board of $2,500.
With regard to transportation expenses, respondent, at trial
and in his trial memorandum, conceded that Mrs. Kandil’s
qualified higher education expenses included transportation costs
up to the amount allowed as determined by SJSU. On brief,
however, respondent argues that the concession was in error. In
essence, respondent now contends that petitioners are not
entitled to an allowance for transportation expenses because such
12 For example, SJSU’s cost of attendance for a student
living off-campus for the academic year 2001-2 was $7,613.
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