- 11 - deficiency, respondent aggregated these two deductions, and reduced the total ($4,615) by $4,108 because petitioners did not establish "that any amount more than $507 was for ordinary and necessary business expense". Respondent did not explain in any detail what portion of what deduction was being disallowed. Although the record is less than clear on the point, respondent claims, and petitioners do not appear to dispute, that the disallowed portions of the deductions are attributable to expenses incurred for travel between petitioner's house and the hospital. According to respondent, the disallowed portions of the deductions constitute, or are attributable to, nondeductible commuting expenses. Commuting expenses, which are transportation expenses incurred between an individual's residence and regular place of employment, are considered personal expenses, the deduction of which is prohibited by section 262.5 Commissioner v. Flowers, 326 U.S. 465, 470-474 (1946). Respondent's position on this point obviously results in part from her determination that petitioner's house was not his principal place of business. We have held on numerous occasions that transportation expenses incurred between an individual's residence and local job sites may be deductible if his residence serves as his "principal place of business" and the travel is in the nature of normal and 5Sec. 262 provides in relevant part, "no deduction shall be allowed for personal, living, or family expenses."Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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