What is a "metropolitan area" for transportation cost purposes?

• Author: Navani, Vinay S.

While commuting expenses are generally nondeductible under Sec. 262, transportation casts to a work location are deductible, according to Rev. Rul. 99-7, if the taxpayer travels between his or her residence and:

1. A temporary work location outside the metropolitan area where the taxpayer lives and normally works.

2. A temporary work location, regardless of distance, if the taxpayer has one or more work locations away from his or her residence.

3. Another work location, if the taxpayer's residence is his or her principal place of business under Sec. 280A(c)(1)(A).

In Corey L. Wheir, TC Summ. Op. 2004-117, the Tax Court considered, for the first time, the definition of "metropolitan area," to determine if the taxpayer's transportation expenses were deductible.

Facts

The taxpayer was a union boilermaker living and working in Wisconsin Rapids, WI. He received assignments from the union office and was dispatched on jobs ranging from one day to several months, located throughout Wisconsin. He did not report to any union office, had no other fixed place of business and was not allowed, under union rules, to reject any assignments. Most of the assignments did not require overnight travel.

The taxpayer deducted travel expenses for jobs greater than 35 miles from his home. The IRS disallowed all the claimed travel expenses; it contended that, because Wisconsin Rapids is not a metropolitan area as defined by the U.S. Census Bureau, the...