Johnson v. Commissioner
United States Tax Court
Held: Real estate agents may not deduct expenses incurred in taking educational courses in real estate that were required under California law to obtain real estate broker licenses. Real estate brokers are in a different trade or business than real estate agents under California law and the real estate courses taken by petitioners led to qualifying them for a new trade or business.
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Held: Real estate agents may not deduct expenses incurred in taking educational courses in real estate that were required under California law to obtain real estate broker licenses. Real estate brokers are in a different trade or business than real estate agents under California law and the real estate courses taken by petitioners led to qualifying them for a new trade or business. Sec. 1.162-5(b)(3), Income Tax Regs.Held, further, petitioners failed to carry their burden of proving that they were entitled to deduct transportation expenses in excess of the amounts allowed by respondent.
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax in the amount of $1,671.78 for the taxable year 1976. After concessions by petitioners, the issues for decision are: (1) Whether petitioners are entitled to a deduction under section 162(a)1 for certain educational expenses; and (2) whether petitioners are entitled to a deduction under section 162(a) for certain transportation expenses in excess of the amount allowed by respondent.2
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts and the exhibits attached…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Davis v. CommissionerUnited States Tax Court · 1976
- Weiszmann v. CommissionerUnited States Tax Court · 1969
- Ronald F. Weiszmann and Deborah C. Weiszmann v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1971
6 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Leahy v. CommissionerUnited States Tax Court · 1986
- Radin v. CommissionerUnited States Tax Court · 1987
- BanatwalaUnited States Tax Court · 1992
- Dierker v. CommissionerUnited States Tax Court · 1994
- Goldstein v. CommissionerUnited States Tax Court · 1987
7 more not listed; retrieve them via the Exa API.