- 26 -
Section 170(j) prohibits a deduction for, inter alia,
unreimbursed traveling expenses incurred incident to the
rendition of charitable services, "unless there is no significant
element of personal pleasure, recreation, or vacation in such
travel." The meaning of a "significant element of personal
pleasure, recreation, or vacation" is far from self-evident.8 An
inquiry into the legislative history of this provision provides
some insight. The House report states:
In determining whether travel away from home involves a
significant element of personal pleasure, recreation, or
vacation, the fact that a taxpayer enjoys providing services
to the charitable organization will not lead to denial of
the deduction. For example, a troop leader for a tax-exempt
youth group who takes children belonging to the group on a
camping trip may qualify for a charitable deduction with
respect to his or her own travel expenses if he or she is on
duty in a genuine and substantial sense throughout the trip,
even if he or she enjoys the trip or enjoys supervising
children. By contrast, a taxpayer who only has nominal
duties relating to the performance of services for the
charity, or who for significant portions of the trip is not
required to render services, is not allowed any deduction
for travel costs. [H. Rept. 99-426, 129 (1985).]
The example makes clear that the relevant inquiry is the extent
and duration of the charitable services provided by the taxpayer,
and not some quantum measure of pleasure derived by the taxpayer.
With this in mind we turn to the facts of this case.
With regard to petitioner's domestic travel and travel to
Nassau, Bahamas, a review of the evidence reveals that petitioner
8 There is some case law interpreting this phrase in the
context of sec. 213(d)(2)(B). See, e.g., Commissioner v. Bilder,
369 U.S. 499 (1962).
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011