This Daily Tax Tip Spotify Podcast and/or WordPress Blog Post discusses the Tax Court case Soboyede v. Commissioner T.C. Summary 2021-3 and the Denial of an Attorney’s Deductions for Lodging and Travel Expenses.
The Tax Court held that an attorney who split his practice between Minnesota and the Washington, D.C., area was not entitled to deduct his lodging expenses while he was in Washington, D.C, because, considering the amount of time he spent in Washington, D.C., and the amount of income he earned there as opposed to Minnesota, his tax home was in Washington, D.C., and he was therefore not away from home while in Washington, D.C.
The Tax Court also upheld the denial of the taxpayer’s claimed deduction for other expenses after finding that he failed to substantiate his transportation expenses as required under Code Sec. 274(d) and did not establish that the other expenses were ordinary and necessary business expenses rather than personal expenses.
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