DocketNumber: No. 22120-05
Citation Numbers: 2008 T.C. Memo. 131, 95 T.C.M. 1521, 2008 Tax Ct. Memo LEXIS 132
Judges: \"Swift, Stephen J.\"
Filed Date: 5/15/2008
Status: Non-Precedential
Modified Date: 4/18/2021
MEMORANDUM FINDINGS OF FACT AND OPINION
SWIFT,
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for 2001. The issue for decision is the deductibility of $ 27,294 in travel expenses (including meal and lodging expenses) petitioner incurred in California while training to qualify as a journeyman electrical power lineman.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
At the time the petition was filed, petitioner resided in Idaho, a resident of the same home in which petitioner was raised. In 1997, petitioner graduated from high school.
In 1998, petitioner enrolled at the Northwest Lineman College in Meridian, Idaho, in a 3-month course offering training to become an electrical power lineman (lineman). Upon completion of this course, petitioner joined the Boise local union of the International Brotherhood of Electrical Workers (IBEW) as an apprentice lineman.
In August 1999, to qualify as a journeyman lineman and also to seek employment in California, *133 which offered more employment opportunities for union linemen than were available in Idaho (a right-to-work State), petitioner enrolled in a California/Nevada based (Cal/Nev) journeyman lineman training program sponsored by the National Electrical Contractors Association (NECA) and by IBEW. A similar IBEW and NECA-sponsored program was available to petitioner in Idaho, but petitioner chose to enroll in the Cal/Nev program.
The Cal/Nev journeyman lineman training program, which petitioner began in August 1999, lasted 3-1/2 years. Participants in the program were required to work for various electrical power companies in California and/or Nevada during the entire 3-1/2 years.
As part of the journeyman lineman training program in which petitioner enrolled and on the basis of the employment needs of NECA contractors located in California and Nevada, the linemen, including petitioner, were assigned to work with contractors at particular job sites. When a job was finished and the contractor no longer needed the linemen, the linemen were reassigned to another NECA contractor in California or Nevada. Petitioner was assigned work only in California.
The schedule below indicates the dates of petitioner's *134 employment during his journeyman lineman training, the contractor for whom petitioner worked, if known, and the California cities in which petitioner's job sites were located:
Jan.--Apr. 2000 | --- | San Diego |
May--July 2000 | --- | Moorepark |
Aug.--Oct. 2000 | Hot Line Construction | Valencia |
Jan.--Apr. 2001 | Hot Line Construction | Valencia |
June--July 2001 | Hot Line Construction | Valencia |
Aug.--Nov. 2001 | Par Electrical | Pacifica |
Jan. 2002 | Par Electrical | Pacifica, Bakersfield & |
Sacramento | ||
Feb. 2002 | --- | Sacramento, Lakeport, & |
Chico | ||
Mar.--May 2002 | --- | Chico & Ukiah |
June--July 2002 | --- | Ukiah & Grass Valley |
Aug.--Oct. 2002 | --- | Grass Valley & Willits |
In 2001 and over the years, petitioner has maintained a room in his parents' home in Boise, in which petitioner has kept clothes and furniture, and petitioner has parked on his parents' property a motorcycle, a boat, and two snowmobiles.
During his journeyman lineman training in California and through the end of 2002, petitioner lived in a fifth-wheel travel trailer which he parked near each job site. When a job was finished or when he was given time off, petitioner often would return to his parents' home in Boise until he was notified of his next *135 job site in California. In 2001, petitioner spent approximately 45 days in Boise and the balance of his time in California working at job sites.
The evidence is unclear as to whether petitioner paid rent to his parents for use of the room he maintained in his parents' home in 2001.
In the fall of 2002, upon qualifying as a journeyman lineman, petitioner committed to maintaining his union membership as a journeyman lineman for at least the following 4 years during which petitioner committed to working only for union-approved contractors wherever employed in the United States.
For the journeyman lineman training in California, petitioner paid no tuition or other fees, and while being trained in California as a journeyman lineman petitioner received wages for his work with the NECA contractors. If, however, during the 4-year period following qualification as a journeyman lineman, petitioner worked for a nonunion contractor, petitioner would be required to repay the cost of his journeyman lineman training program.
In 2002, shortly after qualifying as a journeyman lineman, petitioner added his name to a list of union journeyman linemen available for work in the Boise area. Petitioner, however, *136 continued to work in California as a union journeyman lineman until July 2004.
In August 2004, petitioner took a union job as a journeyman lineman in Idaho, and during the remainder of 2004 and into January 2005 petitioner worked in Idaho.
Petitioner paid Idaho State income taxes on the wages petitioner earned in California in 2001. Petitioner maintained an Idaho driver's license and an Idaho fishing license, but petitioner did not own any real property in Idaho.
On petitioner's 2001 Federal income tax return, petitioner deducted $ 27,294 as ordinary and necessary business expenses he had incurred in 2001 for travel, meals, and lodging relating to his training and his work in California. On audit, respondent disallowed all $ 27,294 as personal, nonbusiness expenses.
On their joint Federal income tax return for 2001, petitioner's parents did not report any rental income from petitioner. On their joint Federal income tax return for 2002, petitioner's parents reported rental income from petitioner of $ 2,400.
OPINION
Under
The primary reason for the allowance of a deduction for travel expenses under
For purposes of
However, a taxpayer may be treated as an itinerant taxpayer, *138 as never "away from home", and therefore as not entitled to travel expense deductions under
In determining whether a taxpayer has a fixed tax home, courts consider three factors set forth in
This Court, as well as the U.S. Court of Appeals for the Ninth Circuit, requires that a taxpayer must have some business justification beyond merely personal reasons for maintaining an alleged tax home remote from a place of employment. See
Mere "hopes" of some day returning to an alleged tax home and finding employment, particularly where job opportunities are "bleak", is not sufficient to provide the necessary business connection to an alleged tax home.
On the facts before us, we conclude that petitioner in 2001 did not have a reasonable business reason or justification for maintaining a tax home in Boise and that his visits to Boise in 2001 for approximately 45 days were not motivated by business reasons. In August 1999, petitioner enrolled in the journeyman lineman training program knowing that for the next 3-1/2 years he would be working with contractors only in California and/or Nevada. Petitioner acknowledged at trial that his employment prospects in Boise were not good in light of Idaho's right to work laws and petitioner's commitment to work only for union contractors for 4 years after the journeyman lineman *140 training.
In 2001, petitioner's business connections to Boise were tenuous and preclude a finding that the room petitioner maintained in his parents' home was maintained for anything other than personal reasons.
In addition, the record does not establish that petitioner had "substantial continuing living expenses" in Boise that duplicated his travel expenses in California. See
In In sum, we conclude that petitioner cannot claim that Boise, Idaho, was his home for the purposes of
In light of petitioner's lack of business reasons for maintaining a tax home in Boise, petitioner's failure to incur substantial duplicate living expenses in Boise, and our decision and the decision of the U.S.*142 Court of Appeals for the Ninth Circuit in
This case is decided on the preponderance of the evidence, and is unaffected by
To reflect the foregoing,
James O. Henderson v. Commissioner of Internal Revenue , 143 F.3d 497 ( 1998 )
Lee E. Coombs and Judy B. Coombs v. Commissioner of ... , 608 F.2d 1269 ( 1979 )
George Harvey James v. United States , 308 F.2d 204 ( 1962 )
Commissioner v. Flowers , 66 S. Ct. 250 ( 1946 )
Peurifoy v. Commissioner , 79 S. Ct. 104 ( 1958 )
Tucker v. Commissioner , 55 T.C. 783 ( 1971 )