Deducting MBA tuition

I saw that too, and as usual, a news article just begs for the court decision to be found and read to get the real story. I couldn't find it, so if somebody can post a link, I would appreciate it.

Note that this is a Summary opinion and cannot be cited in other court cases.

Since she has an unusual name, it took about 15 seconds to search for and find the decision at ustaxcourt.gov

R's, John

Why is that?

From the original article link:

[quote] Decisions in small cases aren't allowed to be cited as precedent. "But everyone uses them," says Melissa Labant, a tax expert with the American Institute of CPAs. "This case definitely provides a road map others can use, especially M.B.A. students." [/quote]

As a non-lawyer, my question is: even if not citable as precedent, can't you still use the same reasoning as the court did in its decision?

-Mark Bole

Absolutely. Personally I found the opinion completely unremarkable. It followed the settled law to the letter, finding that the taxpayer's getting her MBA would not specifically qualify her for a new career, but was instead for the purpose of enhancing her current career.

I got the impression the IRS argument wasn't on the law, but on the issue of whether an MBA qualified her for a new career. The court clearly pointed out that there have been many other court decisions where the cost of an MBA was allowed to be deducted, and others where it was not, depending on the circumstances. It seems the IRS was trying to say that an MBA is, ipso facto, a qualification for a new career, while the courts have often found that not to be the case.

Stu, I agree with your take completely. That is why I said the news article just begged for the court decision to be read - it sounded as if some new precedent was handed down. That was not the case.

SNIPPED

Here's what most people don't know -

There are several types of tax court opinions/decisions and each one carries different weight.

Bench Opinion - is handed down by the judge while you wait. This ONLY happens when the facts are straight forward and there is no real legal interpretation issue involved. For example, if I took a case to court and argued that I was entitled to a larger standard deduction than everyone else because I'm taller than everyone else the court would likely issue a Bench Opinion. These cannot be cited as precedent.

Summary Opinion - is issued in a small case and is written out. These happen when the facts are clear but there may be some question about whether a particular law applies to the situation. These did not used to be published but after 03/01/08 they are electronically viewable on the Court's Docket System. They cannot be cited as a precedent.

Memorandum Opinion - is issued in a regular case that does not involve a novel legal issue. A Memorandum Opinion addresses cases where the law is settled or factually driven. A Memorandum Opinion can be cited as legal authority, and the decision can be appealed.

Tax Court Opinion - is issued in a regular case when the Tax Court believes it involves a sufficiently important legal issue or principle. A Tax Court Opinion can be cited as legal authority, and the decision can be appealed.

I seem to recall that the Court also used to issue a Reviewed Opinion, but I can't find anything on that at the moment. As I recall a Reviewed Opinion was one where the case was so important that ALL the justices got to have some input into it before it was decided.

Gene E. Utterback, EA, RFC, ABA