Identify and discuss relevant authorities including the Internal Revenue Code, Treasury Regulations, cases, and or Revenue Rulings. Write clearly and concisely.
For the past two years, Greg, a Korean American, has worked as a high school physical education teacher. He is also a body-builder and a part-time graduate student in educational technology at Illinois State University. In preparing for a masters thesis he has decided to participate in Big Gun's World Body-building training program and analyzing advanced technology used to help students absorb physical education. The Big Gun's training program has a regular faculty, curriculum, an enrolled body of students, and advanced technology in its gym equipment. Greg earned $4,000 during the fall 2015 as a body-builder by coming in second in the state contest. Greg paid $3,000 in spring 2015 for his masters' degree tuition at Illinois State University for one class on advanced computer technology and another $5,000 to participate at Big Gun's.
- How much can Greg deduct?
- Greg knows about relevant educational tax credits and wants you to focus just on the deductions.