Ronald Z. Thompson - Page 5

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               An individual who, through education, improves his skills in           
          an existing trade or business may also become qualified for a new           
          trade or business.  Educational expenses incurred to qualify for            
          a new trade or business are nondeductible even if the individual            
          does not engage in the new activity.  See sec. 1.162-5(b)(3)(ii)            
          Example (2), Income Tax Regs.  The mere capacity to engage in a             
          new trade or business is sufficient to disqualify the expenses              
          for the deduction.  Weiszmann v. Commissioner, 52 T.C. 1106, 1111           
          (1969) affd. per curiam 443 F.2d 29 (9th Cir. 1971); see sec.               
          1.162-5(b)(3), Income Tax Regs.                                             
               The Court agrees with petitioner’s contention that his                 
          training improved his aeronautical engineering skills.  By taking           
          flight lessons petitioner likely improved his ability to evaluate           
          cockpit ergonomics and design and troubleshoot future flight                
          concepts.  The training also likely improved his skills in                  
          testing and evaluating aircraft flight systems software.                    
          However, the education undertaken by petitioner was a course of             
          study that led to his receipt of commercial pilot certificates.             
          As a result, this Court must decide whether petitioner became               
          qualified for new trade or business by attaining these                      
               Even though petitioner did not intend to work as a                     
          commercial pilot, the commercial pilot certificates qualified him           
          to be employed as a pilot-in-command of an aircraft for single              

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