Daly v. Comm'r of Internal Revenue
| Decision Date | 24 April 1979 |
| Docket Number | Docket No. 9834-77. |
| Citation | 72 T.C. 190 |
| Parties | LEE E. DALY and ROSEMARIE H. DALY, PETITIONERS v. COMMISSIONER of INTERNAL REVENUE, RESPONDENT |
| Court | U.S. Tax Court |
OPINION TEXT STARTS HERE
T, a traveling salesman, resided in his family home in McLean, Va. However, he was assigned by his employer to a three-State sales territory consisting of eastern Pennsylvania, Delaware, and New Jersey. Petitioner made weekly sales trips to his territory, the majority of which were to locations in or reasonably close to Philadelphia. T completed paperwork and other tasks incidental to his sales trips in his McLean residence. Held: Philadelphia is T's tax home. T's decision to maintain his residence and to perform his office tasks outside of his sales territory was personal; accordingly, T may not deduct under sec. 162(a)(2), I.R.C. 1954, the costs of travel between his residence and Philadelphia, or the costs of food, lodging, and travel in the Philadelphia area to the extent that such costs would not have been deductible had he maintained his abode in the Philadelphia area. Held, further, T is not entitled to deductions for travel expenses from the Philadelphia area to McLean or for his food and lodging costs in McLean. Daniel V. S. McEvily, for the petitioners.
Marguerite F. Gramza, for the respondent.
The Commissioner determined a deficiency in Federal income tax for 1975 against petitioner in the amount of $2,027. After concessions, the principal issue remaining for our decision is whether petitioners are entitled to a deduction under section 162(a)(2), I.R.C. 1954, for certain transportation, meals, and lodging expenses incurred in traveling from a personal residence in McLean, Va., to the Philadelphia area.
Some of the facts have been stipulated. The stipulation of facts and accompanying exhibits are incorporated herein by this reference.
Petitioners Lee E. and Rosemarie H. Daly, husband and wife, resided in McLean, Va., at the time their petition in this case was filed. Their 1975 joint Federal income tax return was filed with the District Director of Internal Revenue, Richmond, Va. The deductions here at issue relate to expenses incurred by petitioner Lee E. Daly. Accordingly, he will sometimes hereinafter be referred to as petitioner.
From 1965 to the present, petitioner Lee E. Daly has been employed as a district sales manager of the Myrtle Desk Co. of High Point, N. C. In this capacity, petitioner sells and promotes the Myrtle Desk Co.‘s products (office furniture) to authorized dealers, universities, colleges, schools, hospitals, and other customers, such as architects and interior design studios. Since 1965, he has been assigned to a three-State sales territory of Delaware, New Jersey, and eastern Pennsylvania. Within his territory petitioner is required to call on approximately 125 dealers, as well as additional customers, to receive orders for office furniture. Petitioner is compensated solely on the basis of a 5-percent commission on sales. Myrtle Desk Co. does not reimburse him for any of his sales expenses.
Prior to 1965, petitioner worked for the Institutional Service Co. as a salesman of school equipment in the Washington, D. C., sales territory, which included the District of Columbia, Maryland, and Virginia.
Petitioner Rosemarie Daly is currently employed as manager of the Georgetown Uniform Co. in Washington, D. C. She has worked for that company since 1964.
The petitioners and their children have lived in a house in McLean, Va., a suburb of Washington, D. C., since 1960. Petitioner maintains an office in his home to carry on certain duties, more fully described below, related to his Myrtle Desk Co. job. In 1975, petitioners incurred living expenses in connection with maintenance of their house in McLean.1
During 1975, petitioner made the following business trips from his residence in McLean, Va.
+---------------------------------+
¦ ¦Number of ¦
+---------------------+-----------¦
¦Location ¦times1 ¦
+---------------------+-----------¦
¦ ¦ ¦
+---------------------+-----------¦
¦Philadelphia, Pa ¦17 ¦
+---------------------+-----------¦
¦Wilmington, Del ¦10 ¦
+---------------------+-----------¦
¦Cherry Hill, N.J ¦10 ¦
+---------------------+-----------¦
¦Harrisburg, Pa ¦8 ¦
+---------------------+-----------¦
¦Reading, Pa ¦7 ¦
+---------------------+-----------¦
¦Norristown, Pa ¦6 ¦
+---------------------+-----------¦
¦Lancaster, Pa ¦6 ¦
+---------------------+-----------¦
¦Camden, N.J ¦5 ¦
+---------------------+-----------¦
¦Dover, Del ¦5 ¦
+---------------------+-----------¦
¦Easton, Pa ¦4 ¦
+---------------------+-----------¦
¦Vineland, N.J ¦4 ¦
+---------------------+-----------¦
¦Lebanon, Pa ¦4 ¦
+---------------------+-----------¦
¦Chester, Pa ¦4 ¦
+---------------------+-----------¦
¦Hanover, Pa ¦4 ¦
+---------------------+-----------¦
¦Trenton, N.J ¦4 ¦
+---------------------+-----------¦
¦York, Pa ¦3 ¦
+---------------------+-----------¦
¦Atlantic City, N.J ¦3 ¦
+---------------------+-----------¦
¦Allentown, Pa ¦3 ¦
+---------------------+-----------¦
¦Bethlehem, Pa ¦3 ¦
+---------------------+-----------¦
¦Bristol, Pa ¦3 ¦
+---------------------+-----------¦
¦Princeton, N.J ¦3 ¦
+---------------------+-----------¦
¦Carlisle, Pa ¦2 ¦
+---------------------+-----------¦
¦Wildwood, N.J ¦2 ¦
+---------------------+-----------¦
¦Scranton, Pa ¦2 ¦
+---------------------+-----------¦
¦Wilkes-Barre, Pa ¦2 ¦
+---------------------+-----------¦
¦Hazelton, Pa ¦2 ¦
+---------------------+-----------¦
¦Chicago, Ill2 ¦5 ¦
+---------------------+-----------¦
¦High Point, N.C3 ¦3 ¦
+---------------------+-----------¦
¦Total number of trips¦134 ¦
+---------------------+-----------¦
¦ ¦ ¦
+---------------------------------+
In addition, miscellaneous or occasional customers in petitioner's sales territory were visited on single occasions, but these visits are not included above.
The following table represents the distance in miles to locations visited by petitioner on his business trips measured from Philadelphia, Pa., and McLean, Va.:
+------------------------------------------+
¦ ¦Mileage from ¦
+------------------+-----------------------¦
¦Location ¦Philadelphia ¦McLean ¦
+------------------+--------------+--------¦
¦ ¦ ¦ ¦
+------------------+--------------+--------¦
¦Philadelphia ¦--- ¦133 ¦
+------------------+--------------+--------¦
¦Camden, N.J ¦2 ¦134 ¦
+------------------+--------------+--------¦
¦Cherry Hill, N.J ¦6 ¦140 ¦
+------------------+--------------+--------¦
¦Chester, Pa ¦14 ¦120 ¦
+------------------+--------------+--------¦
¦Norristown, Pa ¦15 ¦139 ¦
+------------------+--------------+--------¦
¦Bristol, Pa ¦21 ¦154 ¦
+------------------+--------------+--------¦
¦Wilmington, Del ¦28 ¦106 ¦
+------------------+--------------+--------¦
¦Trenton, N.J ¦32 ¦165 ¦
+------------------+--------------+--------¦
¦Vineland, N.J ¦37 ¦140 ¦
+------------------+--------------+--------¦
¦Princeton, N.J ¦42 ¦175 ¦
+------------------+--------------+--------¦
¦Bethlehem, Pa ¦53 ¦172 ¦
+------------------+--------------+--------¦
¦Allentown, Pa ¦54 ¦173 ¦
+------------------+--------------+--------¦
¦Reading, Pa ¦54 ¦134 ¦
+------------------+--------------+--------¦
¦Easton, Pa ¦54 ¦183 ¦
+------------------+--------------+--------¦
¦Atlantic City, N.J¦61 ¦176 ¦
+------------------+--------------+--------¦
¦Lancaster, Pa ¦64 ¦105 ¦
+------------------+--------------+--------¦
¦Dover, Del ¦76 ¦96 ¦
+------------------+--------------+--------¦
¦Wildwood, N.J ¦81 ¦184 ¦
+------------------+--------------+--------¦
¦Lebanon, Pa ¦82 ¦128 ¦
+------------------+--------------+--------¦
¦York, Pa ¦88 ¦85 ¦
+------------------+--------------+--------¦
¦Hazelton, Pa ¦95 ¦183 ¦
+------------------+--------------+--------¦
¦Harrisburg, Pa ¦102 ¦107 ¦
+------------------+--------------+--------¦
¦Hanover, Pa ¦105 ¦80 ¦
+------------------+--------------+--------¦
¦Wilkes-Barre, Pa ¦110 ¦208 ¦
+------------------+--------------+--------¦
¦Carlisle, Pa ¦120 ¦100 ¦
+------------------+--------------+--------¦
¦Scranton, Pa ¦122 ¦224 ¦
+------------------+--------------+--------¦
¦High Point, N.C ¦435 ¦302 ¦
+------------------+--------------+--------¦
¦Chicago, Ill ¦783 ¦671 ¦
+------------------------------------------+
The aggregate distance between McLean and the cities petitioner visited in his regular sales territory (excluding Chicago and High Point, N. C.) is 3,744 miles. The aggregate distance between Philadelphia and the same cities is 1,518 miles. The disparity in total mileage is substantially greater if the number of trips to each such city visited is taken into account.
Petitioner's usual weekly business itinerary in 1975 was to leave McLean early Tuesday morning, stay overnight in his territory for 2 nights (Tuesday and...
To continue reading
Request your trial
-
Hantzis v. C. I. R., 80-1140
...additional and duplicate living expenses." Kroll, supra, 49 T.C. at 562 (emphasis added). See Brandl, supra, 513 F.2d at 699; Daly, supra, 72 T.C. at 195. Consciously or unconsciously, courts have effectuated this policy in part through their interpretation of the term "home" in section 162......
-
Bermingham v. Commissioner
...not where his or her personal residence is located. E.g., Mitchell v. Commissioner [Dec. 37,008], 74 T.C. at 581; Daly v. Commissioner [Dec. 36,030], 72 T.C. 190, 195 (1979), affd. [81-2 USTC ¶ 9721] 662 F.2d 253 (4th Cir. 1981); Foote v. Commissioner [Dec. 34,047], 67 T.C. 1, 4 (1976); Gar......
-
Drum v. Commissioner
...Helvering [4 USTC ¶ 1292], 292 U.S. 435, 440 (1934); Welch v. Helvering [3 USTC ¶ 1164], 290 U.S. 111, 115 (1933); Daly v. Commissioner [Dec. 36,030], 72 T.C. 190, 197 (1979), affd. on rehearing [81-2 USTC ¶ 9721] 662 F.2d 253 (4th Cir. 1981). The fact that the case was submitted to the Cou......
-
Krueger v. Commissioner
...his personal residence, if the two are not the same. Mitchell v. Commissioner Dec. 37,008, 74 T.C. 578, 581 (1980); Daly v. Commissioner Dec. 36,030, 72 T.C. 190, 195 (1979), revd. 80-2 USTC ¶ 9719 631 F.2d 351 (4th Cir. 1980), affd. on rehearing 81-2 USTC ¶ 9721, 662 F.2d 253 (4th Cir. 198......
-
Business meal deductions after the TCJA.
...employment and his need for sleep or rest, not whether a layover was the result of scheduling"). (21.) Rev. Rul. 93-86; see also Daly, 72 T.C. 190 (1979), aff'd, 662 F.2d 253 (4th Cir. 1981); Bissonette, 127 T.C. at (22.) Regs. Sec. 1, 274-12(a)(4)(i). (23.) Sec. 274(d), flush language (quo......