8739 / When is a taxpayer considered to be “away from home” for purposes of deducting business travel expenses? What if the taxpayer is away for an extended period of time for business reasons?

As discussed in Q 8738, the IRS requires that a taxpayer be away from the company’s principal place of business, rather than a residence, in order to deduct business travel expenses that would otherwise be personal in nature (such as food and lodging). The IRS has ruled that a taxpayer’s tax “home”—meaning principal place of business—is not limited to a specific building or worksite, but instead encompasses the entire city or general area in which the business is located.¹

In cases where a taxpayer is required to take extended business trips, determining the location of a taxpayer’s primary place of business becomes difficult, though for most taxpayers, the determination is simple because many taxpayers maintain a residence in the general vicinity of their primary place of business. For taxpayers who are required to travel often for business, such extended business travel raises the question as to where that taxpayer’s tax “home” is located.

Generally, in order for the taxpayer to deduct business-related travel expenses, the travel must be temporary in nature (“temporary” for these purposes has been statutorily interpreted to mean an employment period not exceeding one year²).