*575 (An adjustment in medical expense deduction turns automatically on the disposition of the above disputed items.) Petitioner subscribed to a publication of Professional Portfolios issued by the Bureau of Business Practice, and covering such subjects as human relations, personal advancement, communication, and leadership. He paid $37.78 for such subscription.
Petitioner paid dues to Delta Nu Alpha Transportation Fraternity, Inc., in the amount of $168 in 1982. Petitioner conceded that if such dues are deductible at all, it would be under section 170 (charitable contribution) rather than under section 162.
The record contains no proof as to the purpose of the "other" expense in the amount of $53.43. There is no dispute between the parties as to substantiation of any of the disputed items.
OPINION
Petitioner's problem, in attempting to support his law school-related expense deductions, is that he is attempting to apply pre-1967 law (which sanctioned a subjective standard, i.e., intent of the taxpayer in determining the deductibility of education expense). Indeed, the two cases cited to the Court by petitioner, Welsh v. United States,329 F.2d 145">329 F.2d 145 (6th Cir. 1964), and Campbell v. United States,250 F. Supp. 941">250 F. Supp. 941 (E.D. Pa. 1966), are both pre-1967 decisions.
Section 1.162-5(b)(3), Income Tax Regs., as revised in 1967, provides for the disallowance of expenses for education "which is part of a program of study being pursued by [an individual] which will lead to qualifying him in a new trade or business." In Weiler v. Commissioner,54 T.C. 398">54 T.C. 398, 402 (1970), the Court stated as follows with respect to the applicability of these regulations to a factual situation similar to the instant case (i.e., a revenue agent attending law school):
The regulations relied on herein, which are the revised regulations relating to educational expenses issued in 1967, have been explained and approved in Ronald F. Weiszmann,52 T.C. 1106">52 T.C. 1106. As noted above, we think the revised regulations set forth an objective standard for the deduction of educational expenses. We have applied that standard and, in doing so, note here that cases involving the deductibility of legal education expenses by revenue agents decided under previous regulations, such as Welsh v. United States,329 F.2d 145">329 F.2d 145; William J. Brennan,T.C. Memo 1963-243">T.C. Memo. 1963-243, and Milton L. Schultz,T.C. Memo 1964-227">T.C. Memo. 1964-227, are not regarded as having value as precedents.
The Welsh case, mentioned in the above quotation is one of the two cases cited to the Court by petitioner.
The same question (i.e., a school teacher attending law school) was raised in Bodley v. Commissioner,56 T.C. 1357">56 T.C. 1357, 1360 (1971), wherein the Court stated pointedly," [t]he standards laid down by these regulations are objective ones."
The courses taken by petitioner in 1982 were the classic first year law courses, for which he could receive credit toward a J.D. degree. Under the "objective standard" and as has been held in Weiler,Bodley and many subsequent cases decided by this Court, petitioner's state of mind in 1982 was totally irrevelant. See also Examples (1) and (2), section 1.162-5(b)(3), Income Tax Regs. There cannot be any doubt that petitioner's 1982 courses were objectively part of a program which would qualify petitioner for a new profession. And this is true regardless of the length of time it might take to complete that program, and indeed, regardless of whether in subsequent years such program was in fact completed. Cf. Glenn v. Commissioner,62 T.C. 270">62 T.C. 270, 278 (1974). We sustain respondent's disallowance of all law school related expense deductions, including tuition, books, fees, and mileage.
With respect to the subscription to the Professional Portfolios, the Court holds that such subscription was proximately related to petitioner's 1982 employment, and is properly deductible under section 162 as an ordinary and necessary business expense. Such deduction is allowable only as an itemized deduction on Schedule A of the return.
As to the Transportation Fraternity dues, petitioner has conceded the nondeductibility under section 162. The incomplete constitution of Delta Nu Alpha Transportation Fraternity, Inc., and the By-laws of the Golden West College Chapter, in evidence herein, are inadequate to prove that the organization was both organized and operated exclusively for charitable (including educational) purposes, as defined in section 170(c). However, the Court stated at the trial that the deduction would be allowed if the fraternity is listed as a tax-exempt organization by the Internal Revenue Service. Delta Nu Alpha Transportation Fraternity, Inc., Golden West College Chapter, was not listed in 1982 as a tax-exempt organization by the Service. Cumulative List of Organizations Described in Section 170(c) of the Internal Revenue Code of 1954, Internal Revenue Service Publication 78 (Rev. 1-31-83).Hence, we sustain respondent's disallowance of this item.
We likewise sustain respondent's disallowance of the $53.43 deduction for "Other", in the absence of any proof of the nature of this item. Rule 142(a).
To reflect the foregoing,
Decision will be entered under Rule 155.
Document Info
Docket Number： Docket No. 1298-85.
Filed Date： 1/28/1986
Precedential Status： Non-Precedential
Modified Date： 11/20/2020
