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1. Vehicle Expenses
Commuting expenses, which are expenses incurred in traveling
between a taxpayer’s residence and his or her principal place of
business or employment, are generally considered personal
expenses, deduction of which is prohibited by section 262. See
Fausner v. Commissioner, 413 U.S. 838 (1973); Commissioner v.
Flowers, 326 U.S. 465 (1946); secs. 1.162-2(e), 1.262-1(b)(5),
Income Tax Regs. The Commissioner has recognized an exception to
this general rule when the daily transportation expenses are
incurred in going between the taxpayer’s residence and a
temporary work location outside the metropolitan area where the
taxpayer lives and normally works. See Rev. Rul. 99-7, 1999-1
C.B. 361, modifying and superseding Rev. Rul. 90-23, 1990-1 C.B.
28, and Rev. Rul. 94-47, 1994-2 C.B. 18, and obsoleting Rev. Rul.
190, 1953-2 C.B. 303.10
9(...continued)
which, when combined, establish each element of the expense that
sec. 274(d) requires to be established. Sec. 1.274-5T(c)(2)(i),
Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985).
10 In Turner v. Commissioner, 56 T.C. 27, 33 (1971),
vacated and remanded on the Commissioner’s motion by an
unpublished order (2d Cir., Mar. 21, 1972), this Court disallowed
the deduction by an employee of expenses for transportation from
the employee’s residence to a distant temporary job, holding that
“Commuting is commuting, regardless of the nature of the work
engaged in, the distance traveled, or the mode of transportation
used.” The Commissioner, however, in Rev. Rul. 190, 1953-2 C.B.
303, allowed the deduction of expenses incurred for daily
transportation between a taxpayer’s principal or regular place of
employment and a temporary, as distinguished from indefinite,
(continued...)
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