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carrying on a trade or business. Section 162(a)(2) expressly
permits the deduction of traveling expenses, including meals and
lodging, while away from home in the pursuit of a trade or
business. A taxpayer may deduct a traveling expense under
section 162(a)(2) if the following three conditions are
satisfied: (1) The expense must be reasonable (e.g., lodging,
transportation, fares, and food); (2) it must be incurred while
away from home; and (3) it must be an ordinary and necessary
expense incurred in the pursuit of a trade or business.
Commissioner v. Flowers, 326 U.S. 465, 470 (1946). The rationale
in allowing such a deduction is to alleviate the burden falling
upon a taxpayer whose business requires that he or she incur
duplicate living expenses. Tucker v. Commissioner, 55 T.C. 783,
786 (1971); Kroll v. Commissioner, 49 T.C. 557, 562 (1968).
Whether the taxpayer satisfies the three recited conditions is
purely a question of fact. Commissioner v. Flowers, supra at
470; Wills v. Commissioner, 411 F.2d 537, 540 (9th Cir. 1969),
affg. 48 T.C. 308 (1967). Expenses that do not meet these
criteria are considered personal expenses and are not deductible
under section 262(a).
Moreover, a taxpayer generally is required to maintain
records to substantiate the amount of his or her income and
deductions. Sec. 6001; sec. 1.6001-1(a), Income Tax Regs. Under
certain circumstances, where a taxpayer establishes entitlement
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Last modified: May 25, 2011