- 25 - Travel expenses in pursuit of business within the meaning of * * * [sec. 162(a)(2)] could arise only when the railroad’s business forced the taxpayer to travel and to live temporarily at some place other than Mobile, thereby advancing the interests of the railroad. Business trips are to be identified in relation to business demands and the traveler’s business headquarters. The exigencies of business rather than the personal conveniences and necessities of the traveler must be the motivating factors. * * * Id. at 474. We must determine whether the exigencies of petitioner’s business rather than the personal conveniences and necessities of Norman motivated his travel to the Washington, D.C., area, in order to determine whether any or all of the Bethesda apartment expenses are traveling expenses deductible by petitioner. There is no doubt that petitioner had business in the Washington area. That business included providing Norman’s services to the law firm, which treated Norman as an employee. Taking together Norman’s testimony, the fact that the income from the law firm varied from year to year, and our belief that petitioner reported that income on its own return, we are prepared to give petitioner the benefit of the doubt, and we find that Norman was not an employee of the law firm (but that petitioner did business with the law firm, selling its consulting services provided by Norman, petitioner’s employee). To determine whether the exigencies of petitioner’s business brought Norman to Washington, we must determine whether Washington was Norman’s principal post of duty.Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
Last modified: May 25, 2011