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performed by an employee constitute a trade or business for
purposes of section 162(a).4 O’Malley v. Commissioner, 91 T.C.
352, 363-364 (1988).
In general, expenses incurred for a taxpayer’s daily meals
and lodging and for commuting between the taxpayer’s residence
and the taxpayer’s place of business are nondeductible personal
expenses. Sec. 262(a); see, e.g., United States v. Correll, 389
U.S. 299 (1967); Commissioner v. Flowers, 326 U.S. 465, 472-473
(1946); Barry v. Commissioner, 54 T.C. 1210, 1214 (1970), affd.
per curiam 435 F.2d 1290 (1st Cir. 1970); see also secs.
1.162-2(e), 1.262-1(b)(5), Income Tax Regs. By contrast,
traveling expenses, including amounts expended for meals and
lodging, may be deducted if they are incurred while away from
home5 in the pursuit of a trade or business. Secs. 162(a)(2),
262. To deduct a travel expense, the taxpayer must show that (1)
he or she was away from home when he or she incurred the expense,
(2) the expense is reasonable and necessary, and (3) the expense
was incurred in pursuit of a trade or business. Commissioner v.
Flowers, supra at 470.
4An employee is allowed to deduct unreimbursed employee
expenses as miscellaneous itemized deductions on Schedule A,
subject to the 2-percent limitation under sec. 67.
5For a taxpayer to be considered “away from home” within the
meaning of sec. 162(a)(2), the taxpayer must be on a trip that
requires the taxpayer to stop for sleep or a substantial period
of rest. United States v. Correll, 389 U.S. 299 (1967);
Strohmaier v. Commissioner, 113 T.C. 106, 115 (1999).
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