Greenwood v. Commissioner

1989 T.C. Memo. 166, 57 T.C.M. 109, 1989 Tax Ct. Memo LEXIS 169
CourtUnited States Tax Court
DecidedApril 17, 1989
DocketDocket No. 737-85.
StatusUnpublished

This text of 1989 T.C. Memo. 166 (Greenwood v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenwood v. Commissioner, 1989 T.C. Memo. 166, 57 T.C.M. 109, 1989 Tax Ct. Memo LEXIS 169 (tax 1989).

Opinion

ROBERT C. GREENWOOD, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Greenwood v. Commissioner
Docket No. 737-85.
United States Tax Court
T.C. Memo 1989-166; 1989 Tax Ct. Memo LEXIS 169; 57 T.C.M. (CCH) 109; T.C.M. (RIA) 89166;
April 17, 1989.
Robert C. Greenwood, pro se.
T. Keith Fogg, for the respondent.

CLAPP

MEMORANDUM FINDINGS OF FACT AND OPINION

CLAPP, Judge: Respondent determined a deficiency in the amount of $ 2,234 in petitioner's Federal income tax for the calendar tax year 1981. After a concession by petitioner, the sole issue for decision is the deductibility of travel, business and lodging expenses incurred by petitioner, who maintained a primary residence in King George, Virginia, while employed as a pipefitter-welder at the Calvert Cliffs Nuclear Generating Station (Calvert Cliffs) in Lusby, Maryland. The narrow question is whether petitioner's employment was temporary or indefinite.*170 If the former, expenses are deductible as travel and business expenses incurred while away from home under section 162(a)(2). 1 If the latter, they are nondeductible commuting expenses.

FINDINGS OF FACT

Petitioner resided in King George, Virginia when he filed his petition.

Petitioner is a pipefitter-welder, who belongs to a union local based in Washington, D.C. Petitioner was hired by Catalytic, Inc. in 1979 to work at Calvert Cliffs. He had previously worked there from 1971 to 1974. The Calvert Cliffs plant*171 is located 60 miles from petitioner's home in King George County, Virginia. In early 1981, he was working on periodic maintenance related to a unit shutdown when he was laid off for approximately 3 days. He was re-employed by Catalytic Inc., April 14, 1981 and worked through through May 21, 1981, when he was again laid off due to a reduction-in-force. Petitioner was rehired on May 22, 1981, and worked until April 1983, at which time he was laid off due to a further reduction-in-force. He worked on at least two different jobs within the plant during this time, both associated with his skill as a pipefitter-welder. Overall, he worked a total of almost 4 years at Calvert Cliffs, with only two interruptions totaling at most 4 days and an extended absence due to illness from July 10, 1981 through August 28, 1981.

During the period from January to April 8, 1981, petitioner rented a room in St. Leonard, Maryland, which is 11 miles from the plant. This enabled him to work 10- to 12-hour days. The remaining 31 weeks of 1981, petitioner commuted daily from his residence in King George, Virginia to the plant. During 1981, petitioner did not know when his work assignment at Calvert Cliffs*172 would end. At trial, petitioner presented a letter from the Calvert Cliffs employment office which stated in effect that all employees who work there can be fired at any time.

Petitioner kept a diary of his lodging and meal costs while staying in St. Leonard, Maryland. Based on this diary, petitioner's records reflected the following expenses in comparison with the amounts claimed on his 1981 return.

Per ReturnPer Records
Lodging$   650.00$   522.50
Meals1,800.00634.45
Travel Mileage3,553.003,430.98
Tolls-0-227.50
Total$ 6,003.00$ 4,815.43

Petitioner has conceded that the expenses reflected in his records, rather than on his return, are the appropriate amounts should a deduction of expenses be allowed. The travel expenses for 1981 were disallowed by respondent on the grounds that petitioner's job assignment at Calvert Cliffs was indefinite and not temporary, his expenses therefore not having been incurred while away from "home" for purposes of section 162(a)(2).

OPINION

Section 162(a) (2) provides a deduction for travel expenses including meals and lodging incurred while away from*173 home in pursuit of a trade or business. The general rule is that a taxpayer's home for tax purposes is his principal place of employment except when the job assignment is expected to last for only a "temporary" period. The "purpose of [section 162(a) (2)] is to mitigate the burden of the taxpayer who, because of the exigencies of his trade or business, must maintain two places of abode and thereby incur additional and duplicate living expenses." Kroll v. Commissioner,49 T.C. 557, 562 (1968), citing Verner v. Commissioner,39 T.C. 749 (1963), and James v. United States,308 F.2d 204 (9th Cir. 1962).

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Related

Commissioner v. Flowers
326 U.S. 465 (Supreme Court, 1946)
Peurifoy v. Commissioner
358 U.S. 59 (Supreme Court, 1958)
George Harvey James v. United States
308 F.2d 204 (Ninth Circuit, 1962)
Albert v. Commissioner
13 T.C. 129 (U.S. Tax Court, 1949)
Schurer v. Commissioner
3 T.C. 544 (U.S. Tax Court, 1944)
Garlock v. Commissioner
34 T.C. 611 (U.S. Tax Court, 1960)
Verner v. Comm'r
39 T.C. 749 (U.S. Tax Court, 1963)
Kroll v. Commissioner
49 T.C. 557 (U.S. Tax Court, 1968)
Michaels v. Commissioner
53 T.C. 269 (U.S. Tax Court, 1969)
Norwood v. Commissioner
66 T.C. 467 (U.S. Tax Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
1989 T.C. Memo. 166, 57 T.C.M. 109, 1989 Tax Ct. Memo LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenwood-v-commissioner-tax-1989.