Veronica L. Foster - Page 8




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          because those types of education expenses “are personal                      
          expenditures or constitute an inseparable aggregate of personal              
          and capital expenditures and, therefore, are not deductible”.                
          Sec. 1.162-5(b)(1), Income Tax Regs.  These nondeductible                    
          educational expenses are those incurred to meet the minimum                  
          educational requirement for qualification in a taxpayer’s trade              
          or business and those which qualify a taxpayer for a new trade or            
          business.  Sec. 1.162-5(b)(2) and (3), Income Tax Regs.                      
               A.  Minimum Education Requirement                                       
               In seeking the H-1B specialty worker visa for petitioner,               
          Refreshment Brands described her responsibilities in marketing               
          terms.  The company also stated that the general education                   
          requirement was a bachelor’s degree in a related field and that              
          the specific education requirement was a bachelor’s degree in                
          business administration or the equivalent.  Before receiving her             
          M.B.A., petitioner had an engineering degree but no business                 
          degree.  The engineering credential satisfied the general                    
          education requirement but not the job-specific requirement of a              
          degree in business administration.  Only her M.B.A. qualified her            
          for the job.  Accordingly, we find that her M.B.A. education was             
          necessary to satisfy the minimum education requirements for her              
          new trade or business of marketing.                                          
               Petitioner’s counsel argued that respondent gives too much              
          emphasis to petitioner’s title at Refreshment Brands and that her            







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