In the case of Commissioner v. Flowers (326 U.S. 465 (1946)), Flowers spent a lot of money on train tickets commuting to work from his home far away. When he filed his taxes, he attempted to deduct these commuting costs as a business expense, claiming that 23(a)(1)(A) (now known as 26 U.S.C. 162(a)(2)) allows for deductibility of "traveling expenses." However, the US Supreme Court found that commuting expenses were not deductible because the place you live is a personal choice, and Flowers' expenses were solely due to the fact that he chose to live so far away, it was not a necessary cost of doing business.
  • The US Supreme Court found that there were three conditions that must be met to claim a deduction under 162(a)(2):
    • The expenses must be reasonable and necessary traveling expenses.
    • The expense must be incurred while away from home.
    • The expense must be incurred in the pursuit of business.