George Harvey James v. United States

Appellant is a traveling salesman. He sells clothing to two hundred accounts in nine western states on a commission basis for six manufacturers. In computing his 1953 personal income tax he deducted all money spent for hotel rooms, meals, and tips while away from Reno, Nevada. He contended that these were “traveling expenses (including the entire amount expended for meals and lodging) while away from home in pursuit of .a trade or business,” which are made ■deductible by Section 23(a) (1) (A) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 23 (a) (1) (A) as “ordinary and necessary” business expenses.

The Commissioner disallowed the deduction on the ground that taxpayer ■“failed to show that these expenses were incurred while away from home * Taxpayer paid the deficiency and sued to recover. The sole issue submitted to the District Court was whether taxpayer “had a home in the City of Reno, County of Washoe, State of Nevada, during the taxable year 1953.”

Briefly summarized, taxpayer had the following contacts with Reno during 1953. He called upon a dozen accounts in Reno as he did upon similar accounts in other communities in his territory. During the year he spent…