Rev. Rul. 55-4

Advice has been requested whether a deduction may be taken under section 23(a)(1)(A) or section 23(o) of the Internal Revenue Code of 1939 by a taxpayer serving an association held to be exempt for Federal income tax purposes for unreimbursed travel expenses in connection with the performance of his official duties.

In the instant case a taxpayer who gives his services gratuitously as an officer of an association, contributions to which are deductible under the provisions of section 23(o) of the Code, incurs unreimbursed traveling expenses, including cost of meals and lodging, while away from home in connection with the affairs of the association and at its direction.

Section 23(a)(1)(A) of the Code provides in part that a deduction is allowable for `traveling expenses (including the entire amount expended for meals and lodging) while away from home in the pursuit of a trade or business; * * *.' The traveling expenses incurred by the taxpayer here under consideration, in connection with his activities on behalf of the association, do not represent expenses incurred in carrying on a trade or business and, therefore, are not deductible in computing his net income under that section of the Code.

Section 23(o) of the Code provides in part that in computing net income there shall be allowed as deductions:

(o) CHARITABLE AND OTHER CONTRIBUTIONS.-In the case of an individual contributions or gifts payment of which is made within the taxable year to or for the use of:

*

(2) a corporation, trust, or community chest, fund, or foundation created or organized in the United States or in any possession thereof * * * organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, * * *;

* to an amount which in all the above cases combined does not exceed 20 per centum of the taxpayer's adjusted gross income. * * *.

Accordingly, it is held that a taxpayer who gives his services gratuitously to an association, contributions to which are deductible under the provisions of section 23(o) of the Code, and who incurs unreimbursed traveling expenses, including the cost of meals and lodging, while away from home in connection with the affairs of the association and at its direction, may deduct the amount of such unreimbursed expenses in computing his net income subject to the limitation provided by section 23(o) of the Code