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taxpayer’s tax home. Section 1.911-2(b), Income Tax Regs.,
provides as follows:
(b) * * * the term “tax home” has the same meaning
which it has for purposes of section 162(a)(2)
(relating to travel expenses away from home). Thus,
under section 911, * * * [a taxpayer’s] tax home is
considered to be located at his regular or principal
(if more than one regular) place of business or, if the
* * * [taxpayer] has no regular or principal place of
business because of the nature of the business, then at
his regular place of abode in a real and substantial
sense. * * *
If in a year a taxpayer has neither a regular or principal
place of business nor any abode in a real and substantial sense,
a taxpayer may be classified as an itinerant whose tax home is
located wherever the taxpayer is physically located from day to
day. Deamer v. Commissioner, 752 F.2d 337, 339 (8th Cir. 1985),
affg. T.C. Memo. 1984-63; Hicks v. Commissioner, 47 T.C. 71, 73
(1966); Rev. Rul. 73-529, 1973-2 C.B. 37.
During 2001 and until May 5, 2002, petitioners’ business
consisted principally of traveling in international and foreign
waters to foreign countries on the yacht of Cush Automotive.
Because petitioners had neither a regular or principal place of
business, nor a specific abode in a real and substantial sense
during the applicable periods, we conclude that petitioners were
itinerants, that petitioners had a foreign tax home during the
300 plus days they were physically present in a foreign country
during petitioners’ applicable periods for 2001 and for 2002, and
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