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section 162(a)(2) has a special meaning. It generally refers to
the area of a taxpayer’s principal place of employment, not the
taxpayer’s personal residence. Daly v. Commissioner, 72 T.C.
190, 195 (1979), affd. 662 F.2d 253 (4th Cir. 1981); Kroll v.
Commissioner, supra at 561-562.
There is an exception to the general rule that a taxpayer’s
tax home is his or her principal place of employment. Peurifoy
v. Commissioner, 358 U.S. 59, 60 (1958). The taxpayer’s tax home
may be the taxpayer’s personal residence if the taxpayer’s
employment away from home is temporary. Id.; Mitchell v.
Commissioner, T.C. Memo. 1999-283. On the other hand, the
exception does not apply and the taxpayer’s tax home remains the
principal place of employment if the employment away from home is
indefinite. Kroll v. Commissioner, supra at 562.
It is presumed that a taxpayer will generally choose to live
near his or her place of employment. Frederick v. United States,
603 F.2d 1292, 1295 (8th Cir. 1979). A taxpayer must, however,
have a principal place of employment and accept temporary work in
another location to be away from home. Kroll v. Commissioner,
supra. A person who has no principal place of business nor a
place he or she resides permanently is an itinerant and has no
tax home from which he or she can be away. Deamer v.
Commissioner, 752 F.2d 337, 339 (8th Cir. 1985), affg. T.C. Memo.
1984-63; Edwards v. Commissioner, T.C. Memo. 1987-396.
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Last modified: November 10, 2007