John Allen and Glenna A. Lyle - Page 8

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          expenditures are deductible under section 162(a) regardless of              
          whether employment is obtained.  See Cremona v. Commissioner, 58            
          T.C. 219 (1972).  Deductible job-seeking expenses can include               
          travel expenses while away from home.  See Kozera v.                        
          Commissioner, T.C. Memo. 1986-604.  The deduction for expenses              
          incurred away from home is intended to mitigate the burden of a             
          taxpayer who, because of the travel requirements of his trade or            
          business, must maintain two places of abode and therefore must              
          incur duplicate living expenses.  See Barone v. Commissioner, 85            
          T.C. 462, 466 (1985), affd. without published opinion 807 F.2d              
          177 (9th Cir. 1986).                                                        
               In order to be allowed as a deduction under section 162, a             
          taxpayer must establish that the travel expenses were:  (1)                 
          Reasonable and necessary; (2) incurred while away from home; and            
          (3) incurred in pursuit of a trade or business.  See Horton v.              
          Commissioner, 86 T.C. 589, 593 (1986).  Petitioners claimed                 
          substantial amounts attributable to lodging, food, travel,                  
          postage, long-distance telephone calls, and car insurance as job-           
          hunting expenses.  These expenses were incurred during the period           
          January through July 1995.                                                  
               Respondent has two alternative theories for denying the job-           
          hunting expenses.  First, respondent contends that petitioner had           
          no tax home in 1995, and therefore none of the traveling expenses           
          can be deducted because they were not incurred "while away from             

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