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Submitted By nili2075
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Facts
Charley Long, a truck driver, works for a seafood company in Mobile, Alabama. Charley helps to deliver fresh seafood to customers from Mobile with the company’s truck. Charley leaves Mobile every weekday at 4:00pm and arrives his last stop at 12:00 midnight. It’s up to Charley whether to drive straight back or spend a night along the road as Charley’s company doesn’t reimburse any his lodging and food expense. Charley sometimes sleeps in his cab in which is equipped with sleeping facilities, having one meal on his way. Occasionally, Charley stays in motels during which he will eat two meals. The IRS disallowed all his expenses generated in his trips, as IRS believes that his expenses are personal expenses.

Issues
1, Are Charley’s travel expenses qualified as unreimbursed employee expense?
2, Can Charley deduct the expenses when he sleeps in the cab?
3, Can Charley deduct the expenses when he sleeps in the motel?
Solutions to issues
1, Yes. Charley’s travel expenses are related to his employment with purpose of pursuing a trade or business activity. His employer does not reimburse Charley’s expenses. Charley’s travel expenses should be unreimbursed employee expenses.
2, No. According to U.S. vs. Correll, 389 U.S. 299 (1967), the Court ruled unfavorably for the taxpayer in the situation where a traveling salesman pulled his car over to the side of the road and slept for several hours during trips. Charley cannot deduct his expenses on the night that he spent in cab.
3, Yes. According to Rev. Rul. 75-168, 1974 C.B. 58, if Charley can show that it is reasonable for him to take sleep or rest on his trips in order to meet the demands of his job, he can deduct expenses related to business trip and meals.
Analysis
Generally, under Sec.162, taxpayers can deduct travel expenses while away from home in pursuit of trade or business, provided

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