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A. Section 162(a)(2) Sleep or Rest Rule
The standard used to determine whether a taxpayer is “away
from home” was developed through a series of cases including
Williams v. Patterson, 286 F.2d 333, 340 (5th Cir. 1961). As
stated in Williams, as applied to a traveler whose work does not
require him to be “away from home” overnight, the standard is:
If the nature of the taxpayer’s employment is such
that when away from home, during released time, it is
reasonable for him to need and to obtain sleep or rest
in order to meet the exigencies of his employment or
the business demands of his employment, his
expenditures (including incidental expenses, such as
tips) for the purpose of obtaining sleep or rest are
deductible traveling expenses under Section 162(a)(2)
* * * . [Id.]
This standard is commonly referred to as the “sleep or rest
rule”.
The facts of Williams assist in understanding the sleep or
rest rule articulated above. In Williams, the taxpayer, a
railroad engineer, worked a 16-hour day every other day. On a
turnaround run between Montgomery, Alabama, his home terminal,
and Atlanta, Georgia, he had a 6-hour layover in Atlanta before
his return to Montgomery the same day. Although the taxpayer was
not required by his employer to do so, during the layover period
he felt it was necessary to sleep and rest and rented a hotel
room. At the hotel he had lunch and dinner as well as rested and
slept before resuming work.
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Last modified: May 25, 2011