DocketNumber: No. 10462-01
Citation Numbers: 2002 T.C. Memo. 192, 84 T.C.M. 148, 2002 Tax Ct. Memo LEXIS 197
Judges: \"Wolfe, Norman H.\"
Filed Date: 8/6/2002
Status: Non-Precedential
Modified Date: 4/18/2021
*197 Decision will be entered under Rule 155.
MEMORANDUM FINDINGS OF FACT AND OPINION
WOLFE, Special Trial Judge: Respondent determined a deficiency of $ 5,152 in petitioner's 1997 Federal income tax. The issues for decision are whether petitioner is entitled to claimed deductions for: (1) Automobile expenses incurred in traveling between her residence and various job sites; and (2) certain other unreimbursed employee expenses.
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time the petition was filed, petitioner resided in Benicia, California.
FINDINGS OF FACT
During the year in issue petitioner earned $ 24 hourly working as a nurse and as a nursing consultant for Pleasant Care Corporation (PCC). Petitioner began working*198 for PCC during the early 1990s. From that time through the year in issue petitioner maintained an apartment in Stockton, California. During her first few years of employment by PCC, petitioner regularly worked in or near Stockton. From approximately March 31, 1996, until 2001, she was assigned to work at various facilities outside of Stockton. In 1997, the year in issue, petitioner was assigned to work at facilities in the following cities:
Round trip
Job site Number of weeks mileage from Stockton
________ _______________ _____________________
Novato 9 171
Napa 1 141
Bakersfield 11 491
Ukiah 18 337
Yuba City 10 174
Petitioner was assured by her supervisor that the assignments would only be temporary and that she would be reassigned to the facility in Stockton. The supervisor's assurances about the temporary*199 nature of petitioner's assignments during 1997 were accurate. The supervisor's assurances that petitioner would be reassigned to a PCC facility in or near Stockton proved to be false. PCC was expanding by acquiring additional facilities, and, at least partly for this reason, petitioner repeatedly was assigned to work at PCC's facilities in various cities other than Stockton until 2001. Then petitioner gave up her hopes for reassignment to Stockton, told her supervisor that she would not be moved about any longer, and accepted a permanent position at a PCC subsidiary's facility in Vista, California.
Petitioner owned only one vehicle during the year in issue, a 1993 Toyota Corolla. She commuted daily in that vehicle between her apartment in Stockton and the job sites in Novato, Napa, and Yuba City. During the periods that she worked in Bakersfield and Ukiah, she lodged overnight at the residence of a coworker during the week and returned to her apartment in Stockton on the weekends. Although petitioner continued to live in Stockton and seek assignment to a PCC facility in or near Stockton, she did not work at the Stockton facility at any time during the year in issue.
On her 1997 Federal*200 income tax return, petitioner reported total income of $ 82,085 and itemized deductions of $ 26,353. She claimed unreimbursed employee expenses on Schedule A, Itemized Deductions, as follows:
Continuing education $ 250
Books/subscriptions/etc. 420
Uniforms/maintenance 1,325
Telephone 625
Vehicle 17,190
Total $ 19,810
She also deducted $ 192 for telephone expenses and $ 782 for uniform/maintenance and $ 1,588 for car and truck expenses, among other items, on Schedule C, Profit or Loss From Business. Petitioner reported total business mileage of 59,610 miles, of which 5,040 miles were reported on Schedule C. Petitioner's income from her work in Bakersfield, unlike her income from her work at the other locations, was reported as nonemployee compensation on the Schedule C.
During 1997 petitioner maintained a log of her vehicle's mileage. According to the log, her vehicle was driven a total of 48,490 miles between January 16, 1997, the first day of her first job assignments*201 that year, and December 31, 1997.
The record shows the number of round trips that were made as well as the mileage between petitioner's apartment in Stockton and the facilities to which she drove. The record establishes that in addition to the undisputed 5,040 business miles that she drove to and from Bakersfield, petitioner drove 24,598 miles for business purposes during 1997 based on the following figures:
Number of Round trip Total
Job site round trips mileage mileage
________ ___________ __________ _______
Novato 50 171 8,550
Napa 3 141 423
Ukiah 19 337 6,403
Yuba City 53 174 9,222
24,598
In the notice of deficiency, respondent disallowed all of the unreimbursed employee expenses that petitioner claimed on her Schedule A. Respondent did not make any adjustments to*202 petitioner's Schedule C.
OPINION
We have generally defined the word "home" as used in
A place of business is temporary if the employment is such that termination within a short period could be foreseen.
In
*204 In the present case, petitioner's expenses incurred in traveling to Bakersfield and Ukiah required an overnight stay. Those expenses are deductible, if at all, as traveling expenses under
It is clear that petitioner's work at the facility in Ukiah, as well as at the other facilities where she worked in 1997, was temporary, rather than indefinite. Petitioner stayed overnight in Ukiah during the week when she*205 worked there and returned to her apartment in Stockton only on weekends. Accordingly, the traveling expenses she incurred on her trips to Ukiah are deductible under
The expenses of daily commuting, unlike traveling expenses, are not deductible under
*206 In cases involving a variety of circumstances, this Court and other courts have established and applied the rule that expenses incurred in commuting to a job site are deductible if work at the job site is temporary, but not if it is for an indefinite period. See
In Epperson, the taxpayer was an ironworker who, during 1981, commuted daily to various job sites from his home in Seffner, Florida:
Round trip
Job site Number of days mileage from Seffner
________ ______________ ____________________
New Wales 92 44
Palatka 26 *207 300
St. Petersburg 43 30
Crystal River 37 160
After finding that all of the jobs were temporary, rather than indefinite, we held that the taxpayer's commuting expenses to the job sites in Palatka and Crystal River were deductible, but his commuting expenses to the job sites in New Wales and St. Petersburg were not deductible because they "were clearly within the general area of the petitioner's residence". Id.
Other courts have likewise imposed a requirement that for a taxpayer's commuting expenses to be deductible the taxpayer's residence must be distant from the temporary job site. In
A judicial exception has been carved out of this general rule
[that daily commuting expenses are not deductible] to cover
instances when people commute long distances to their workplaces
for business, rather than personal, reasons. This exception
permits taxpayers*208 to deduct commuting expenses to a job that is
temporary, as opposed to indefinite, in duration. The exception
has been deemed necessary because "it is not reasonable to
expect people to move to a distant location when a job is
foreseeably of limited duration." Implicit in this
exception is the requirement that the taxpayer commute to a
worksite distant from his or her residence. Without such a
requirement, the absurd result would obtain of permitting a
taxpayer, who commuted to a succession of temporary jobs, to
deduct commuting expenses, no matter how close these jobs were
to his residence. [Emphasis added; citations omitted.]
See also
Respondent argues that petitioner's temporary travel to work sites distant from her home in Stockton should be disallowed under the so-called "two-prong test" of
Petitioner has satisfied the requirements of
Petitioner had established her home near her place of employment and only accepted temporary assignments outside that area on the promise of reassignment within the Stockton area. She had no reason to disbelieve*210 her supervisor during the year in issue. In a later year, when she did cease to believe the promises of her supervisor, she changed her place of employment. Under these circumstances, in our view throughout the year in issue petitioner properly regarded the Stockton vicinity as the metropolitan area where she "lives and normally works". Therefore, even under respondent's own revenue ruling, and the rule advocated by respondent in this case, petitioner correctly deducted transportation expenses incurred in going between Stockton and her temporary work sites at Novato, Napa, and Yuba City to the extent such expenses are substantiated.
Respondent's reliance on
Petitioner has not established any business reason for
living in Yuba City; her decision to live there was entirely
personal. * * * The record does not indicate that petitioner
ever worked in, had the prospect of work in, or had any other
business tie to Yuba City. The union hall where petitioner
received*211 her job assignments was in Sacramento, which is south
of Yuba City, and all of petitioner's work sites were south of
Sacramento.
The long commutes in Aldea were for personal reasons and nondeductible; in contrast, the long commutes in this case were for employment reasons and therefore are deductible to the extent they are substantiated.
*212 The elements that must be substantiated with respect to deductible expenses for business use of an automobile are: (1) The amount of the expenditures; (2) the mileage for each business use of the automobile and the total mileage for all use of the automobile during the taxable period; (3) the date of the business use; and (4) the business purpose for the use of the automobile.
To meet the adequate records requirements of
On her 1997 Federal income tax return, petitioner claimed that during 1997 her vehicle was driven 62,730 miles, of which 59,610 were business miles. On her Schedule A, petitioner reported business mileage of 54,570 miles, and on her Schedule C, she reported business mileage of 5,040 miles. Her vehicle expenses were computed using the appropriate standard mileage rate for 1997 of 31.5 cents. See
During 1997 petitioner maintained a log of the odometer readings for her vehicle. The log contains the names of the cities to which petitioner drove. The log shows that the vehicle was driven a total of 48,490 miles between January 16, 1997, the first day of her first job assignment that year, and December 31, 1997. Petitioner submitted two vehicle maintenance receipts that showed the odometer readings on October 5, 1997, and January 13, 1998. The odometer readings on the receipts were consistent with petitioner's log.
Although the log apparently accurately reflects petitioner's total mileage for the year, the record does not clearly show what portion of the total miles was driven for business purposes. The mileage in petitioner's*214 log was not recorded precisely. For example, the mileage for any given day was generally identical to the mileage from the day before, and her daily mileage was always rounded to the nearest multiple of ten. Petitioner testified that she often estimated the mileage from the amount of time she spent driving. For example, she admitted that it was not unusual for her to simply equate one hour of driving with a distance of 60 miles.
Although revenue procedures permit taxpayers to use a per- mile estimate of automobile expenses in lieu of documenting actual expenses, taxpayers must still prove the actual business miles driven during the year. See
In the present case petitioner has substantiated the number of round trips she made for business purposes between her residence and her temporary work sites and the distance of each round trip. We have found that in addition to the undisputed 5,040 business miles that petitioner drove to Bakersfield, she also drove 24,598 miles to various temporary work sites during 1997. Since petitioner has satisfied the adequate record requirement for this mileage and therefore substantiated this business expenditure, we hold that petitioner is entitled to the claimed deduction to the extent of the substantiated mileage (24,598 miles plus the undisputed 5,040 miles) at the appropriate rate for 1997.
If a taxpayer's otherwise deductible traveling expenses are reimbursed by her employer, the taxpayer is entitled to a deduction only for the amounts in excess of the reimbursements. See
Petitioner admitted that her employer reimbursed her*216 $ 525 for her vehicle expenses in 1997. Petitioner did not report the reimbursements on her tax return. Thus, petitioner's deduction for employee expenses must be adjusted accordingly.
In addition to disallowing petitioner's vehicle expenses, respondent also disallowed all of petitioner's other unreimbursed employee expenses, consisting of continuing education, books/subscriptions, uniforms/maintenance, and telephone expenses.
Deductions are a matter of legislative grace, and a taxpayer bears the burden of proving entitlement to any deduction claimed. See Rule 142(a);
At trial, petitioner did not introduce a single piece of documentary evidence in support of any of the deductions in issue except for her travel expenses. Likewise, petitioner did not offer testimony in support of any of those deductions. Because the record contains no evidence upon which we could base an estimate, we must sustain respondent's determinations in regard to unreimbursed employee expenses other than motor vehicle expenses.
To reflect the foregoing,
Decision will be entered under Rule 155.
1.
2. As discussed above, the temporary or indefinite test serves a similar function in the
3. We note that
Edward M. Dahood, Jr., Wilfred and Diane Masse, George H. ... , 747 F.2d 46 ( 1984 )
Cohan v. Commissioner of Internal Revenue , 39 F.2d 540 ( 1930 )
Walter P. Stricker and Joan M. Stricker v. Commissioner of ... , 438 F.2d 1216 ( 1971 )
Donald P. Kasun and Joyce J. Kasun v. United States , 671 F.2d 1059 ( 1982 )
W. Horace Williams, Sr., and Viola Bloch Williams v. United ... , 245 F.2d 559 ( 1957 )
Lee E. Daly and Rosemarie H. Daly v. Commissioner of ... , 662 F.2d 253 ( 1981 )
Billy J. Neal and Judith A. Neal v. Commissioner of ... , 681 F.2d 1157 ( 1982 )
raymond-a-sanders-and-vadna-m-sanders-raymond-degn-kevin-o-blackwell , 439 F.2d 296 ( 1971 )
Louis R. And Yvonne M. Frederick v. United States , 603 F.2d 1292 ( 1979 )
Nester and Lavain M. Ellwein v. United States of America, ... , 778 F.2d 506 ( 1985 )
Commissioner v. Flowers , 66 S. Ct. 250 ( 1946 )
Fausner v. Commissioner , 93 S. Ct. 2820 ( 1973 )
Peurifoy v. Commissioner , 79 S. Ct. 104 ( 1958 )
United States v. Correll , 88 S. Ct. 445 ( 1967 )
Indopco, Inc. v. Commissioner , 112 S. Ct. 1039 ( 1992 )
Michaels v. Commissioner , 53 T.C. 269 ( 1969 )
Daly v. Commissioner , 72 T.C. 190 ( 1979 )
Mitchell v. Commissioner , 74 T.C. 578 ( 1980 )