German v. Commissioner

1986 T.C. Memo. 370, 52 T.C.M. 170, 1986 Tax Ct. Memo LEXIS 243
CourtUnited States Tax Court
DecidedAugust 11, 1986
DocketDocket No. 7077-84.
StatusUnpublished

This text of 1986 T.C. Memo. 370 (German v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
German v. Commissioner, 1986 T.C. Memo. 370, 52 T.C.M. 170, 1986 Tax Ct. Memo LEXIS 243 (tax 1986).

Opinion

LEATRICE GERMAN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
German v. Commissioner
Docket No. 7077-84.
United States Tax Court
T.C. Memo 1986-370; 1986 Tax Ct. Memo LEXIS 243; 52 T.C.M. (CCH) 170; T.C.M. (RIA) 86370;
August 11, 1986.
*243

Petitioner, a guidance counselor, participated in a fashion study course that involved traveling to Israel, Egypt and Spain. Petitioner claimed a deduction for the expenses she incurred from participating in the course, which respondent disallowed. Held, petitioner is not entitled to a deduction for these expenses because she failed to establish that such expenses were incurred to maintain or improve her skills as a guidance counselor.

Carl Noah German, for the petitioner.
Maureen C. Kopko and H. Karl Zeswitz, for the respondent.

STERRETT

MEMORANDUM FINDINGS OF FACT AND OPINION

STERRETT, Chief Judge: By notice of deficiency dated December 20, 1983, respondent determined a deficiency in petitioner's Federal income tax for the taxable year ended December 31, 1980 in the amount of $910.44. After concessions, the sole issue before us is whether petitioner is entitled to deduct certain expenditures as educational expenses under section 162(a). 1

FINDINGS OF FACT

Some of the facts have *244 been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.

Petitioner, Leatrice German, resided in Wynnewood, Pennsylvania when the petition was filed in this case. Petitioner timely filed her Federal income tax return for the taxable year 1980 with the Internal Revenue Service Center in Philadelphia, Pennsylvania.

During 1980, petitioner was employed as a guidance counselor by the Philadelphia School District. As a counselor, petitioner's job responsibilities included providing counseling and guidance services for students with respect to personal, social, educational and career development matters.

While on summer break from her employment, petitioner participated in a 3-week fashion study course that involved traveling to Israel, Egypt and Spain. Petitioner did not receive any credit for her participation in this course, which was offered by Temple University. In deciding whether to take this course, petitioner did not examine any syllabus, itinerary or curriculum that described the course. Petitioner also did not keep a diary or journal of her activities while in Israel, Egypt and Spain. *245

Petitioner's employer did not require her to take this course, and she was not reimbursed for her expenses. On her Federal income tax return filed for the taxable year 1980, petitioner deducted $1,502 for expenses incurred in taking this fashion study course. In his notice of deficiency, respondent disallowed this claimed deduction. Respondent's disallowance was based on his determination that the expenses were not incurred to maintain or improve skills required in her employment but rather were incurred for personal reasons.

OPINION

We must determine whether the expenses petitioner incurred from her participation in the fashion study course are deductible under section 162(a).

Section 162(a) allows a taxpayer a deduction for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Section 262 expressly disallows a deduction for "personal, living, or family expenses," and section 1.262-1(b)(9), Income Tax Regs., provides that "Expenditures made by a taxpayer in obtaining an education or in furthering his education are not deductible unless they qualify under section 162 and § 1.162-5 * * *." Section 1.162-5, Income Tax Regs., *246 sets forth objective criteria for distinguishing between those expenses which are business expenses and those which are personal expenditures. This regulation, with certain exceptions not relevant here, 2 provides that educational expenses are deductible as ordinary and necessary business expenses if the education (1) maintains or improves skills required by the individual in his employment or other trade or business, or (2) meets the express requirements of the individual's employer. Sec. 1.162-5(a), Income Tax Regs.3*247

Whether education maintains or improves skills required by the taxpayer's employment is a question of fact. Baker v. Commissioner,51 T.C. 243, 247 (1968). The burden of proof is on the taxpayer. Welch v. Helvering,290 U.S. 111 (1933);

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kornhauser v. United States
276 U.S. 145 (Supreme Court, 1928)
Welch v. Helvering
290 U.S. 111 (Supreme Court, 1933)
Baker v. Commissioner
51 T.C. 243 (U.S. Tax Court, 1968)
Boser v. Commissioner
77 T.C. 1124 (U.S. Tax Court, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
1986 T.C. Memo. 370, 52 T.C.M. 170, 1986 Tax Ct. Memo LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/german-v-commissioner-tax-1986.