Norman E. Duquette, Inc. - Page 25




                                       - 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