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employers or by any law or regulation. Petitioner was not
reimbursed for the expenses paid to attend Sierra Academy.
In 2002, petitioner paid Sierra Academy $17,826 for tuition
and $929 for required books, equipment, and uniforms. He
reported $18,755 as educational expenses on his Schedule A,
Itemized Deductions, for 2002. Petitioner prepared his 2002
Federal income tax return using tax preparation software.
On November 15, 2005, respondent mailed petitioner the
notice of deficiency with respect to 2002 which denied
petitioner’s deductions for educational expenses. Petitioner
timely filed his petition on December 22, 2005.
OPINION
Section 162(a) allows a deduction for all ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business. Generally, expenditures made
by an individual for education are deductible under section
162(a) if the education maintains or improves skills required of
the individual in his employment or other trade or business or
meets the express requirements of the individual’s employer.
Sec. 1.162-5(a), Income Tax Regs. However, even if the general
rule is satisfied, expenses for education are nondeductible if
the education is part of a program of study which will lead to
qualifying an individual for a new trade or business. Sec.
1.162-5(b)(1), (3), Income Tax Regs.
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Last modified: November 10, 2007