Traffic for 2003 October 17 (entry 0)

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Red Tape >

Bummer: Our latest tax question had relevance in my life. When I leave my home in Provo to do an internship, may I deduct the cost of living as traveling costs in LA during the summer? IRC Section 162 says "Go ahead" while IRC Section 262 warns me against such. Because all the Regs were written in some ancient Gaelic form I am not familiar with (seriously), I had to turn to case law......

The Tax Court says yes, but the Circuit Court says no. Unfortunately, I think I have to trust the circuit court on this one.....no deduction for me!

Consequently, this law was enacted to allow CONGRESS the right to deduct their expenses in Washington, DC since they must have two homes as per representation. Their job requires it, whereas mine does not. Where's Mr. Smith when you need him?


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