Cross References
- Linzy, T.C. Memo. 2013-219, September 16, 2013

IRC Section 162(a) allows a taxpayer to deduct all ordinary and necessary expense paid or incurred in carrying on a trade or business. An ordinary expense is one that commonly or frequently occurs in the taxpayer's business. A necessary expense is one that is appropriate and helpful in carrying on the taxpayer's business.

The taxpayer in this case was in the business of preparing tax returns for her clients. She testified that she ran Joyce's Tax Service from her home and that clients would come to her property to have their tax returns prepared. She testified that living in her neighborhood was stressful and that she felt harassed by her clients who would call her at home at any hour. For these reasons she contends that it was necessary for her to travel just to get rest so that she could function. She provided invoices to the court from a Holiday Inn, a car rental service, and a casino.

The court said the taxpayer failed to show that her travel expenses were related to her business. A taxpayer's choice about where to live is personal. The taxpayer's travel for a good nights rest was a personal expense, not a deductible business expense.