Allen J. McDonell v. Commissioner case brief

Allen J. McDonell v. Commissioner case brief summary
26 T.C.M. 115 (Tax Ct. 1967)

SYNOPSIS:
Petitioner taxpayers challenged the decision from respondent, Commissioner of Internal Revenue (commissioner), which determined a deficiency in their income tax returns.

OVERVIEW: The 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 commissioner determined a deficiency in their income tax return.

HOLDING:
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.

ANALYSIS:
The court held that the expenses of the trip were not includable in the gross income of the taxpayers.

OUTCOME: The court reversed the decision of the commissioner, finding that the trip was an essential part of the husband's employment and was not a vacation and the expenses were not includable in the gross income of the taxpayers.

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