Thomas J. Mitchell and Janice M. Mitchell - Page 6

                                        - 6 -                                         

          Following concessions, the traveling expenses at issue are as               
                                             1994      1995                           
               Apartment                   $14,950   $15,705                          
               Travel                       14,050    12,501                          
               Meals and entertainment       4,805     3,360                          
               Utilities                     1,015     1,243                          
          All of the disputed expenses for travel and for meals and                   
          entertainment relate to petitioner's travel between Orland Park             
          and California.  The cost of the apartment was less than the                
          amount that petitioner would have had to pay had he stayed in a             
          hotel room during his time in California.                                   
               Throughout all of the relevant years, petitioner was                   
          registered to vote in Illinois, he registered his car in                    
          Illinois, and he maintained his only checking account in                    
          Illinois.  Petitioner's only connection to California was that he           
          performed services there.                                                   
               During the relevant years, ACN did not restrict petitioner             
          from providing additional consulting services to other companies,           
          and it did not give him an office at its Century City location.             
          Petitioner offered his consulting services to other prospective             
          clients during those years.                                                 
               We must decide whether petitioners may deduct the traveling            
          expenses in dispute.  Petitioners contend that they may because             
          petitioner was away from his tax home in Orland Park while                  

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

Last modified: May 25, 2011