- 5 -
family expenses. Sec. 262. To qualify under section 162(a)(2),
the expenses must be (1) reasonable and necessary, (2) incurred
while “away from home”, and (3) incurred in pursuit of a trade or
business. Commissioner v. Flowers, 326 U.S. 465, 470 (1946).
In the context of section 162(a)(2), the word “home” does
not have its ordinary and usual meaning. Rather, the word “home”
refers to the taxpayer’s principal place of business or
employment and not his personal residence. Putnam v. United
States, 32 F.3d 911, 916 (5th Cir. 1994); Mitchell v.
Commissioner, 74 T.C. 578, 581 (1980). If a taxpayer has more
than one place of business, his tax “home” is: (1) The place
where he spends more of his time; (2) the place where he engages
in a greater part of business activity; and (3) the place where
he derives a greater proportion of his income. Robertson v.
Commissioner, T.C. Memo. 1997-526 (citing Hoeppner v.
Commissioner, T.C. Memo. 1992-703), affd. 190 F.3d 392 (5th Cir.
1999).
We find that for the taxable years in question, petitioner’s
tax home, or principal place of employment, was Chicago and not
Stoughton, Wisconsin. By petitioner’s own admission, he had only
personal reasons for living in Stoughton as opposed to Chicago.
In a normal week, petitioner spent 3 days a week in Stoughton and
4 days a week in Chicago. On occasion, petitioner spent 3 days
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011