A married couple living in Manhattan. The husband Gregg owns five dry cleaning stores in NYC. The wife Sheila writes cookbooks and volunteers regularly for the Help Center, a suicide hotline. They have one son, David, who is studying engineering at NYU. You are preparing their income tax return for the current tax year. In September of the current year, you call Gregg and Sheila to find out if they have questions about year-end tax planning. The following scenarios pertain to transactions they engaged in this year:

1. Gregg is self-employed and this year he spent $1,800 on suits, shirts and shoes to wear while meeting with investors in his franchise of dry cleaners. Sheila is a writer and on her book tour the publisher requires that she wear suits, high heels and appropriate jewelry. The cost of those items for Sheila this year was $6,750. Under what circumstances may this couple deduct the cost of these work clothes?

2. Their son David is a junior at NYU. For his first two years he was eligible for scholarships which paid all of his tuition and expenses. Beginning in Fall of the current year, however, Gregg and Sheila are paying for his tuition and fees, though he will still receive a scholarship for room and board. In addition, they paid for a study abroad trip to Oxford for David in June/July of the current year, which included tuition and fees for the course he took there, as well as travel costs, room and board. They would like to know the tax treatment of these items. Also, their friend Helen told them they could have avoided this issue to begin with by saving in advance through other tax beneficial options. Gregg does not believe him and wants to know what they could have done differently.