- 3 - teaching job in Calexico. In the statutory notice of deficiency, respondent disallowed the claimed deduction. Section 162(a) allows a deduction for the ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business including the trade or business of being an employee. Commissioner v. Flowers, 326 U.S. 465 (1946). Section 162(a)(2) allows a deduction for traveling expenses if the expenses are: (1) Ordinary and necessary; (2) paid or incurred while away from home; and (3) paid or incurred in pursuit of a trade or business. Bochner v. Commissioner, 67 T.C. 824, 827 (1977). The purpose behind the deduction for expenses paid or incurred while a taxpayer is away from home is to ease the burden on the taxpayer who incurs additional and duplicate living expenses. Rosenspan v. United States, 438 F.2d 905, 912 (2d Cir. 1971); Tucker v. Commissioner, 55 T.C. 783, 786 (1971). For purposes of section 162(a)(2), the vicinity of a taxpayer's principal place of business or employment generally is considered his "home". Mitchell v. Commissioner, 74 T.C. 578, 581 (1980). If a taxpayer chooses for personal reasons to maintain a residence far from his permanent place of employment, traveling expenses to and from the place of employment are nondeductible personal expenses. Sec. 262; Bochner v. Commissioner, supra at 827.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011