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found in section 72(t)(2) applies to their 2001 IRA distribution.
B. Qualified Higher Education Expenses
For purposes of section 72(t)(2)(E), qualified higher
education expenses are expenses for tuition, fees, books,
supplies, and equipment required for enrollment or attendance at
an eligible educational institution.5 Sec. 529(e)(3)(A). Room
and board may be qualified higher education expenses for students
under guaranteed plans who are at least half-time students. Sec.
529(e)(3)(B). Furthermore, higher education expenses must be for
the education of the taxpayer, the taxpayer’s spouse, or any
child or grandchild of the taxpayer or taxpayer’s spouse. Sec.
72(t)(7).
1. The Computer
Neither the Internal Revenue Code nor the applicable
regulations provide specific guidance on whether a computer is a
qualified higher education expense. Petitioners point to
Internal Revenue Service Notice 97-60, 1997-2 C.B. 310, to argue
that a computer is a “necessary tool or equipment” and therefore
is a qualified higher education expense. Notice 97-60 does not,
5 An eligible educational institution is any college,
university, vocational school, or other postsecondary vocational
institution that is described in sec. 481 of the Higher Education
Amendments of 1986, Pub. L. 99-498, 100 Stat. 1476. Sec.
529(e)(5); Notice 97-60, sec. 4, 1997-2 C.B. 310, 317-318.
Respondent does not question, and we assume for the purpose of
this opinion, that Miami University is an eligible educational
institution.
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