For the past two years, Masako, a Japanese 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 State University. In preparing for a masters thesis, Masako has decided to participate in Arnolds Body-Building Training Program, which uses advanced analysis technology to help students absorb physical education. Arnolds training program has a regular faculty, curriculum, an enrolled body of students, and advanced technology in its gym equipment.

During the fall of 20X5, Masako earned $4,000 as a body-builder by coming in second in the state contest. In spring of 20X5, Masako paid $3,000 for his masters degree tuition at State University for one class on advanced computer technology and another $5,000 to participate at Arnolds. Masako knows about relevant educational tax credits and wants you to focus just on the deductions. Based on the information provided:

How much can Masako deduct?

Discuss whether Masako may deduct the cost of his graduate degree or the body-building training program as a business expense based on tax law.