Morgan v. Commissioner

1980 T.C. Memo. 82, 39 T.C.M. 1263, 1980 Tax Ct. Memo LEXIS 500
CourtUnited States Tax Court
DecidedMarch 20, 1980
DocketDocket Nos. 3174-78, 3254-78.
StatusUnpublished

This text of 1980 T.C. Memo. 82 (Morgan 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
Morgan v. Commissioner, 1980 T.C. Memo. 82, 39 T.C.M. 1263, 1980 Tax Ct. Memo LEXIS 500 (tax 1980).

Opinion

B. L. MORGAN and NELLANNE SUE MORGAN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent; B. L. MORGAN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
Morgan v. Commissioner
Docket Nos. 3174-78, 3254-78.1
United States Tax Court
T.C. Memo 1980-82; 1980 Tax Ct. Memo LEXIS 500; 39 T.C.M. (CCH) 1263; T.C.M. (RIA) 80082;
March 20, 1980, Filed
B. L. Morgan, pro se.
F. Michael Kovach, Jr., for the respondent.

HALL

MEMORANDUM FINDINGS OF FACT AND OPINION

HALL, Judge: Respondent determined the following deficiencies in petitioners' income tax:

YearDeficiency
1974$1,821.48
19751,015.30

The issues presented*501 are:

1. Whether B. L. Morgan incurred and paid living and transportation expenses while away from home overnight (section 162(a)(2)) 2 or in connection with his employment (section 162(a)) during 1974 and 1975.

2. Whether B. L. Morgan incurred and paid expenses during 1974 and 1975 while engaged in the activity of snow removal for profit.

3. Whether B. L. Morgan incurred and paid home-office expenses in 1975 which were ordinary and necessary in the production of income.

FINDINGS OF FACT

B. L. Morgan (hereafter "petitioner") resided in Port Huron, Michigan, when he filed his petitions in these cases.

Petitioner filed a joint return for 1974 with his them wife, Clara M. Morgan (now Day). He filed a joint return for 1975 with his wife Nellanne Sue Morgan.

Petitioner is a pipefitter. In 1969 he established his home in Nicholasville, Kentucky, where his then wife Clara and his children lived. Petitioner was considered a resident of Kentucky for purposes of a divorce proceeding in 1974, which culminated in his divorce from Clara in January 1975. Until*502 his divorce, petitioner paid property taxes and other expenses for his wife and children in Kentucky. He also made visits to Kentucky during 1974 to see his children. On such occasions, Clara moved out of the house.

In April 1972 petitioner moved to Port Huron, Michigan. At first he lived in a motel, later in a room in a private house, and in 1975 when he married Nellanne Sue Morgan he moved into a house with her and three stepchildren.

Petitioner, a pipefitter, obtained his employment out of his union hall in Odessa, Texas, which referred him to the local union in Detroit. Petitioner worked for the Lummus Company at Marysville, Michigan, from April 1972 to May 1973 (13 months). He worked for Fishbach & Moore at Marysville from May 1973 to February 1974 (9 months). He worked for Bechtel Construction Company at Avoca, Michigan, from February 1974 to November 1974 (9 months). He was out of work from November 1974 to April 1975 (5 months). He worked for Lorne Construction Company at Detroit from April 1975 to December 1975 (8 months). From December 1975 to January 1976, he worked in Marysville. From April to May 1976 he worked for Maintenance Engineers in Croswell, Michigan.

*503 During all of his employment, petitioner commuted from Port Huron to work. Marysville is 12 miles from Port Huron, Avoca is 20 miles, Detroit is 62 miles and Croswell is 25 to 30 miles from Port Huron.

On his 1974 joint income tax return, petitioner claimed employee away from home expenses of $4,816 for meals and lodging and $1,290 for automobile expenses (8,600 miles at 15 a mile).

On his 1975 return, petitioner claimed a deduction of $3,051.50 for employee away from expenses ($2,825 mileage expense 3 plus $226.50 parking fees and tolls).

In November 1974 petitioner purchased a snowblade and hydraulic lift for his one-ton truck. He had it installed and ready for use by December. However, by then most of the snow removal business had been contracted to others. Petitioner unsuccessfully contacted banks and other businesses in an effort to get their snow removal business in 1974.

On his 1974 return he claimed the following deductions in connection with his snow removal activities:

Supplies & perishable tools--repairs$ 344
Advertising9
Miscellaneous expenses50
Insurance85
Total$ 488

*504 He reported no income from the snow removal activities in 1974.

On his 1975 return, petitioner claimed $35 gross income from snow removal activities and the following expenses:

Repairs and maintenance$ 255.00
Depreciation109.00
Insurance35.00
Gas17.50
License15.00
Total$ 431.50

On his 1975 joint income tax return, petitioner claimed a deduction of $659 for home-office expenses.

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1980 T.C. Memo. 82, 39 T.C.M. 1263, 1980 Tax Ct. Memo LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-commissioner-tax-1980.