4 OPINION Section 162(a)(2) allows a taxpayer to deduct traveling expenses, including amounts expended for meals and lodging, if such expenses are (1) ordinary and necessary; (2) incurred while away from home; and (3) incurred in the pursuit of a trade or business. Commissioner v. Flowers, 326 U.S. 465, 470 (1946). For purposes of section 162, generally "home" (or tax home) means the vicinity of the taxpayer's principal place of business or employment. Mitchell v. Commissioner, 74 T.C. 578, 581 (1980); Bixler v. Commissioner, 5 B.T.A. 1181, 1184 (1927). A taxpayer's residence, when different from the vicinity of his principal place of employment, may be treated as his tax home if the taxpayer's employment is "temporary" rather than "indefinite". Peurifoy v. Commissioner, 358 U.S. 59, 60 (1958). It is axiomatic that, to be entitled to a deduction under section 162(a)(2), a taxpayer must have a tax home from which to be away. A taxpayer without a tax home is deemed to have "carried his home on his back" and is not entitled to the deduction because he was not "away from home". Hicks v. Commissioner, 47 T.C. 71, 73 (1966). A primary consideration in determining whether a taxpayer has a tax home is whether or not the taxpayer incurs substantial, continuous, and duplicative living expenses. The duplication ofPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011