- 8 -
All the facts and circumstances are considered in
determining whether a taxpayer has a tax home. See Rev. Rul. 73-
529, 1973-2 C.B. 37 (describing objective factors the
Commissioner considers in determining whether a taxpayer has a
tax home). The taxpayer must generally have some business
justification to maintain the first residence, beyond purely
personal reasons, to be entitled to deduct expenses incurred
while temporarily away from that home. Hantzis v. Commissioner,
638 F.2d 248, 255 (1st Cir. 1981); Bochner v. Commissioner, 67
T.C. 824, 828 (1977); Tucker v. Commissioner, 55 T.C. 783, 787
(1971). Where a taxpayer has no business connections with the
primary residence, there is no compelling reason to maintain that
residence and incur substantial, continuous, and duplicative
expenses elsewhere. See Henderson v. Commissioner, 143 F.3d 497,
499 (9th Cir. 1998), affg. T.C. Memo. 1995-559; Deamer v.
Commissioner, supra; Hantzis v. Commissioner, supra. In that
situation, the expenses incurred while temporarily away from that
residence are not deductible. Hantzis v. Commissioner, supra;
Bochner v. Commissioner, supra; Tucker v. Commissioner, supra;
see McNeill v. Commissioner, T.C. Memo. 2003-65; Aldea v.
Commissioner, T.C. Memo. 2000-136.
Once Mr. Stephens was bumped from Georgia, he had no job to
return to there. His choices were to be laid off and have no
work, or to bump another employee and move to a different city to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: November 10, 2007