McDonell v. Commissioner, Docket No. 3575-64. - 1967 Tax Ct. Memo LEXIS 243 (T.C. Jan. 31, 1967)

Rule:

The taxpayers’ participation, made the trip no different from any other business trip requiring their services – whose duties were substantial and could not have been performed by stag men. The expenses of the trip are not includable in the gross income of the taxpayers. 

Facts:

Petitioner taxpayers filed a joint annual tax return and reported miscellaneous commissions of their tax return as the estimated costs attributable to the wife's presence of a business trip. The respondent Commissioner of Internal Revenue determined a deficiency in their income tax return. Petitioners challenged the respondent’s decision. 

Issue:

Were the expenses of the business trip includable in the petitioners’ gross income? 

Answer:

No.

Conclusion:

On appeal, the court held that the taxpayers were expected to have gone on the trip as an essential part of the husband's employment and that the trip was not a vacation for the taxpayers because it was realistically a command performance to work. The court held that the expenses of the trip were not includable in the gross income of the taxpayers.