The Code Section For The Purpose Of Expenses For Education Essay

1645 Words Nov 24th, 2015 7 Pages
IV. Authority for Conclusions

A. Per I.R.C. §162(a), in order for Mr. Boston to deduct miscellaneous itemized expenses on Schedule A of his 2013 tax return the deduction must be ordinary and necessary expenses paid or incurred during the tax year in the course of carrying on any trade or business.

Treas. Reg. §1.162-5 clarifies the Code section for the purpose of expenses for education. Treas. Reg. §1.162-5(a) describes the two situations in which education expenses are allowed to be miscellaneous itemized deductions.

1. Treas. Reg. §1.162-5(a)(1) states that expenditures made by a taxpayer individual for education are deductible as ordinary and necessary expenses if the education maintains or improves skills required by the taxpayer in their employment or trade or business.
2. Treas. Reg. §1.162-5(a)(2) states that expenditures made by a taxpayer for education are deductible as ordinary and necessary expenses if the education meets the express requirements of the taxpayer’s employer, law or regulation.

Treas. Reg. §1.162-5(b) describes two situations in which education expenses are not allowed to be miscellaneous itemized deductions.

1. Treas. Reg. §1.162-5(b)(2)(i) states that expenditures made by a taxpayer for education are not deductible as ordinary and necessary expenses if the education is taken to meet the minimum educational requirements for qualification of the employment or trade or business.
2. Treas. Reg. §1.162-5(b)(3)(i) states that expenditures made…

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