Question

	Tax - Intermediate Vehicle Expense [2019] _
9	To claim a personal residence as the tax home, a taxpayer must:
	A.- Acknowledge the home as their domicile.
	B.- Incur substantial, continual living expenses there.
	C.- Pay a few bills there every once in a while.
	D.- Make sure the address on their driver's license matches the address of the personal residence.
10	It is important to determine a taxpayer's tax home because:
	A.- Tax home determines residency for state income tax.
	B.- Transportation expenses are only deductible outside the taxpayer's tax home.
	C.- Travel expenses are only deductible outside the taxpayer's tax home.
	D.- Both transportation and travel expenses are only deductible outside the taxpayer's tax home.

Answer 1

To claim a personal residence as the tax home, a tax payer must-

Answer-(A)- Acknowledge the home as their domicile-

Your tax home is the general area of your main place of business, employement, post of duty, regardless of where you maintain your family home. Your tax home is the place where you are permenantly or indefinitely engaged to work as an employee or self employed individual. Having a "tax home" in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes.

If u do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. If u have neither a regular or main place of business nor a place where you regularly live, you are considered as an itinerant and you tax home is wherever you work.

It is important to determine a tax payers tax home because-

Answer-(D)- Both transportation and travel expenses are only deductible outside the tax payer's tax home-

The tax home determines whether business expenses for transportation, meals and lodging will be treated tax free. The Internal Revenue Service (IRS) considers an employee to be travelling away from home if his business obligations require him to be away from his tax home for a period longer than an ordinary work day. Therefore both transportation and travel expenses are only deductible outside the tax payer's tax home.