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In a ruling on December 23, 2013, the U.S. Tax Court denied a Florida MBA student, with little work experience the claim for deduction of his tuition costs as a business expense.

1. What was the concentration (major area of study) of the student’s MBA degree?
2. What was the amount of the bill that the IRS levied on the tuition claimed? What percent was that amount of tuition? Is this the student’s effective tax rate?
3. According to the article by CNN, what changes are coming to the tuition tax break in 2014?

Reuters Staff. (2013). U.S. Tax Court Rules Against MBA Student Seeking Tuition Tax Break. The New York Times, Dec. 26 (Retrievable online at

CNN Staff. (2013). Tax season 2014: 8 disappearing tax breaks. ABC, Dec. 27 (Retrievable at