V is a district supervisor for several grocery stores.He is a native of Indianapolis and maintains his residence there.His primary responsibility, however, is for Louisville and the surrounding area.V spends virtually all of his time working in the Louisville area.While working in and around Louisville he incurred the following expenses: BW Motel, $1,250; ZK Motel, $1,400; LL Motel, $750 (total motel expense $3,400), and meals, $200.If V is audited, a deduction for the meals and lodging would be allowed.

Question

Quizplus · Accepted Answer

The IRS generally considers your "tax home" to be the entire city or general area where your primary place of business or work is located, regardless of where you maintain your family home. Since V spends the majority of his time and conducts his primary business activities in the Louisville area, this area would likely be considered his tax home. Therefore, expenses for lodging and meals in Louisville would not be deductible, as they are incurred in his tax home and are considered personal living expenses, not travel expenses.

V Is a District Supervisor for Several Grocery Stores