Hicks v. Commissioner

1986 T.C. Memo. 255, 51 T.C.M. 1257, 1986 Tax Ct. Memo LEXIS 349
CourtUnited States Tax Court
DecidedJune 23, 1986
DocketDocket No. 34298-83.
StatusUnpublished

This text of 1986 T.C. Memo. 255 (Hicks 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
Hicks v. Commissioner, 1986 T.C. Memo. 255, 51 T.C.M. 1257, 1986 Tax Ct. Memo LEXIS 349 (tax 1986).

Opinion

CARL GENE HICKS AND DORLIA J. HICKS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Hicks v. Commissioner
Docket No. 34298-83.
United States Tax Court
T.C. Memo 1986-255; 1986 Tax Ct. Memo LEXIS 349; 51 T.C.M. (CCH) 1257; T.C.M. (RIA) 86255;
June 23, 1986.
Carl Gene Hicks & Dorlia J. Hicks, pro se.
James E. Kagy, for the respondent.

PATE

MEMORANDUM OPINION

PATE, Special Trial Judge: This case 1 was heard pursuant to the provisions of section 7456(d)(3) of the Code and Rules 180, 181 and 182, Tax Court Rules of Practice and Procedure.2

Respondent determined a $3,510 deficiency in petitioners' 1980 Federal income taxes. The issues for our decision are (1) whether petitioners may deduct transportation, meals and lodging as traveling expenses incurred while "away from home" on business; (2) whether petitioners may deduct the value of their car as a casualty loss; and (3) whether petitioners may deduct certain claimed medical expenses.

Petitioners, *351 Carl Gene Hicks (hereinafter "Carl") and Dorlia J. Hicks (hereinafter "Dorlia"), are husband and wife and filed a joint income tax return for 1980. They resided in Bellevue, Ohio, at the time their petition was filed. Some of the facts have been stipulated and are incorporated herein by this reference. For clarity, well will combine the specific findings of fact and opinion for each issue.

TRAVELING EXPENSES

With the exception of several brief lay-offs, Carl worked for Wismer & Becker Contracting Engineers (hereinafter "Wismer & Becker") as a welder on a nuclear power plant construction project in Monroe, Michigan (hereinafter "the Monroe project"), from September 1979 until March 1984. Construction of the entire Monroe project was expected to last several years, but it was divided into sections. Crews were hired for one section at a time and were laid off as each section was completed.Usually, construction on the following section would begin and the crews rehired within two to three weeks. Carl never was told how long his employment would last, but he was aware that Monroe was a major construction project and he knew that welders were in high demand. All of Carl's*352 lay-offs occurred between 1979 and 1982; thereafter he worked continuously until 1984.

While working on the Monroe project, Carl lived in a rented apartment near Monroe but his wife and three children continued to reside in Bellevue, Ohio. Petitioners contend that Carl's employment in Monroe was temporary and, therefore, the cost of his food, lodging and automobile is deductible. Respondent maintains that Carl's job was indefinite and, therefore, Carl's traveling expenses constitute nondeductible personal expenses.

Personal, living and family expenses ordinarily are not deductible. Sec. 262. However, section 162(a)(2) allows a deduction for traveling expenses, including amounts expended for transportation, meals and lodging, while a taxpayer is "away from home" in pursuit of a trade or business. 3 To qualify for this deduction, three conditions must be met: (1) the expenses must be ordinary and necessary; (2) the expenses must have been incurred while "away from home"; and (3) the taxpayer must have incurred the expenses in pursuit of trade or business. Commissioner v. Flowers,326 U.S. 465, 470 (1946); Cockrell v. Commissioner,321 F.2d 504, 507 (8th Cir. 1963),*353 affg. 38 T.C. 470 (1962).

The concept of "home" in tax cases is generally raised when the taxpayer lives in one city and works in another. In the leading case of Commissioner v. Flowers,supra, the Supreme Court held that, when a taxpayer establishes his home in one city and accepts permanent employment in another, the expenses of traveling to and from the city in which the taxpayer's residence is located are not incurred in pursuit of his trade or business. Rather, they are nondeductible personal living expenses resulting from the taxpayer's decision to maintain his residence in a place other than the city in which his business is located. Foote v. Commissioner,67 T.C. 1, 4 (1976). Therefore, this Court has held that "home", as used in section 162(a)(2), means the vicinity of the taxpayer's principal place of employment and not necessarily where his personal residence is located. E.g.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Welch v. Helvering
290 U.S. 111 (Supreme Court, 1933)
Commissioner v. Flowers
326 U.S. 465 (Supreme Court, 1946)
Peurifoy v. Commissioner
358 U.S. 59 (Supreme Court, 1958)
Henry L. Boone and Nancy M. Boone v. United States
482 F.2d 417 (Fifth Circuit, 1973)
Donald P. Kasun and Joyce J. Kasun v. United States
671 F.2d 1059 (Seventh Circuit, 1982)
Estate of Scofield v. Commissioner
25 T.C. 774 (U.S. Tax Court, 1956)
Garlock v. Commissioner
34 T.C. 611 (U.S. Tax Court, 1960)
Cockrell v. Commissioner
38 T.C. 470 (U.S. Tax Court, 1962)
Gale v. Commissioner
41 T.C. 269 (U.S. Tax Court, 1963)
Blatnick v. Commissioner
56 T.C. 1344 (U.S. Tax Court, 1971)
Ramsay Scarlett & Co. v. Commissioner
61 T.C. No. 85 (U.S. Tax Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
1986 T.C. Memo. 255, 51 T.C.M. 1257, 1986 Tax Ct. Memo LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hicks-v-commissioner-tax-1986.