Albert William Dehr, III and Yoeng Yoep Dehr - Page 7

                                        - 7 -                                         

               Petitioner argues that his home is "the base of my                     
          operation" and that his only business office is in his home.                
          Petitioners claimed office-in-home expenses on Schedule C and               
          filed Form 8829, Expenses for Business Use of Your Home,                    
          reporting expenses associated with the home office.  No issue was           
          raised by respondent with respect to whether, and respondent did            
          not contest that, petitioner's business was run from his office             
          in his home.                                                                
               Generally, expenses that a taxpayer incurs in commuting                
          between his home and place of business are personal and                     
          nondeductible.  Commissioner v. Flowers, 326 U.S. 465 (1946);               
          Heuer v. Commissioner, 32 T.C. 947, 951 (1959), affd. per curiam            
          283 F.2d 865 (5th Cir. 1960); secs. 1.162-2(e), 1.262-1(b)(5),              
          Income Tax Regs.  Expenses incurred, however, in going between              
          two or more places of business may be deductible as ordinary and            
          necessary business expenses under section 162 if incurred for               
          business reasons.  Steinhort v. Commissioner, 335 F.2d 496, 503-            
          504 (5th Cir. 1964), affg. T.C. Memo. 1962-233; Heuer v.                    
          Commissioner, supra.  A taxpayer may deduct the expenses of                 
          traveling between two places of business, one of which is an                
          office in his home that is the taxpayer's principal place of                
          business for the trade or business conducted by the taxpayer at             
          those other work locations.  Curphey v. Commissioner, 73 T.C.               
          766, 777-778 (1980).                                                        





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011