8742 / Is a taxpayer entitled to a deduction for travel expenses when the taxpayer has multiple places of business?

If a taxpayer regularly conducts business in more than one location, a determination must be made as to which location is the “principal” place of business. This determination must be made by examining all the facts and circumstances of the particular case, but the IRS has identified the following factors as important:

(1) The total time spent at each of the business locations;

(2) The degree of business activities conducted at each location; and

(3) Whether the financial return in each location is significant or insignificant.¹