These steps include attesting permanent residence that is considered as tax home, showing duplicative living expenses and proving that the duration of the job is definite and temporary. One area in taxation filled with confusion is the deductibility of travel expenses of taxpayers who are temporarily away from home on business. In addition, there are recent developments that can further complicate the issue if not fully understood. The Reasons for the Confusion IRC Sec. 162 provides that traveling expenses while away from home in the pursuit of a trade or business are deductible, to the extent they are ordinary and necessary.
Unreimbursed employee traveling expenses are deductible only as an itemized deduction.
They must be added to other itemized deductions, which in the aggregate are deductible only to the extent they exceed two percent of adjusted gross income. Regulations to Sec. The Treasury Department issued regulations interpreting old Sec. The court in Flowers summarized the regulations into three basic requirements and declared the regulations had the effect of law. Congress however, in The Energy Policy Act of 1992, established a parameter on temporary, amending Sec.