Travel, Transportation, and Commuting Expenses: Problems Involving Deductibility
![handle is hein.journals/molr43 and id is 537 raw text is: TRAVEL, TRANSPORTATION, AND
COMMUTING EXPENSES: PROBLEMS
INVOLVING DEDUCTIBILITY
I. INTRODUCTION
Section 162(a)(2) of the Internal Revenue Code allows a deduction
for traveling expenses while the taxpayer is away from home in the pur-
suit of a trade or business.' By providing this deduction, Congress
sought to ease the burden of traveling workers who, because of the
exigencies of their trade or business, must maintain two places of
abode and thereby incur duplicate living expenses.2 When the taxpayer
travels away from home on business for short periods of time, it is un-
reasonable to expect him to take his home with him; therefore, he is
permitted to deduct his traveling expenses from the business trip. How-
ever, Congress did not intend to allow a deductible business expense for
those outlays which are not caused by the exigencies of the business, but
instead are caused by the taxpayer's decision to locate his home, for his
own convenience, at a distance from his place of business.3 Such ex-
penditures are not in pursuit of the taxpayer's business and were not
within the contemplation of Congress, which proceeded on the assump-
tion that a businessman would live within reasonable proximity to his
business.4
In discussing the deductibility of expenses under section 162(a)(2), a
distinction must be made among traveling expenses, transportation ex-
penses, and commuting expenses. Traveling expenses generally include
transportation expenses, meals and lodging, and expenses incident to
travel.5 The Internal Revenue Service has expanded the definition to
include baggage claims, reasonable tips and other incidental expenses.6
Transportation expenses are limited to transportation fares of all kinds,
such as taxi and bus fares and the cost of operating and maintaining an
automobile (to the extent that it is used for business purposes). The
1. I.R.C. § 162(a)(2) specifically provides:
There shall be allowed as a deduction all the ordinary and necessary
expenses paid or incurred during the taxable year in carrying on
any trade or business, including-.., traveling expenses (including
amounts expended for meals and lodging other than amounts which
are lavish or extravagant under the circumstances) while away from
home in the pursuit of trade or business....
2. Ronald D. Kroll, 49 T.C. 557, 562 (1968).
3. Barnhil v. Commissioner, 148 F.2d 913, 917 (4th Cir. 1945).
4. Id.
5. Treas. Reg. § 1.162-2(a) (1954). Expenses incident to travel include sam-
ple rooms, telephone, stenographer services, etc.
6. I.R.S. Pub. No. 17, at 60 (1977), in [1978] 2 FED. TAxEs (P-H) 11.362.](ViewImageLocal?handle=hein.journals/molr43&div=42&collection=&method=preview&ext=.png&size=3)
What Is HeinOnline?
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Travel, Transportation, and Commuting Expenses: Problems Involving Deductibility
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most