Travel Status Requires That the Taxpayer Be Away from Home

question 83

Essay

Travel status requires that the taxpayer be away from home overnight.
a. What does "away from home overnight" mean?
b. What tax advantages result from being in travel status?

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Definitions:

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, unrelated to market value.

Effective Interest Amortization

A method of allocating loan interest payments over the life of the loan, taking into account the varying principal amounts.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.

Bond's Life

The period from the issuance of a bond until it matures and the principal is repaid.