Under which condition can a repayment of $3,000 or more be deducted in the year of the repayment?

A repayment of $3,000 or more can be deducted in the year of repayment when it is made under a claim of right. This principle allows taxpayers to deduct repayments of amounts previously received when they were included in income, and which later had to be repaid. The "claim of right" doctrine applies when the taxpayer received an amount without restriction on their use, with the expectation that they could keep it, and subsequently had to repay it due to the circumstances changing or the original basis for the payment being challenged.

In the context of taxes, if the repayment is required to account for money that was included in gross income in a prior year, it can be deducted from the taxpayer’s current year's income. This deduction is particularly relevant when the repayment happens after the taxpayer has reported and paid tax on those funds.

The other conditions mentioned do not qualify for the deduction of such repayments. Personal loans and related expenses do not fall under the claim of right doctrine and typically do not provide a tax deduction upon repayment. Unrelated business expenses and education expenses likewise do not pertain to the conditions that would allow for a deduction in the year of repayment under the standards of the claim of right.