It's probably easiest to start with the concept of "tax home."
This is the basis for all "business travel" deductions
which is what you're talking about here.
The tax home concept permeates the code (sometimes as specific terminology and sometimes simply as a logical basis, even though it's not always CALLED tax home in the code). We see it in "business travel," "moving expense
" deductions, "medical
travel," and others areas as well.
Also, it's probably good to "get out there"/establish that permanent (100%) deduction
for a second abode/living space/lodging is never deductible
... meaning that the cost is deductible only for nights when you are either (1) "traveling for business" or (2) on a "temporary assignment"
So if you do pay for a permanent establishment you (1) Need to establish your tax home and (2) deduct only the cost of that for the days that you are away FROM your tax home.
Here are some selections from IRS Publication 463, that can serve as a foundation for this analysis:
"Deductible travel expenses
while away from home include, but are not limited to the costs of:
Travel by airplane, train, bus or car between your home and your business destination. (If you are provided with a ticket or you are riding free as a res
Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate
, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
Fares for taxis or other types of transportation between the airport or train station and your hotel, the hotel and the work location, and from one customer to another, or from one place of business to another.
Meals and lodging.
Tips you pay for services related to any of these expenses.
Dry cleaning and laundry.
Business calls while on your business trip (This includes business communications by fax machine or other communication devices).
Other similar ordinary and necessary expenses related to your business travel (These expenses might include transportation to and from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer).
Shipping of baggage, and sample or display material between your regular and temporary work locations."
Now, here's the part about temporary vs permanent:
"You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you cannot deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you will work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes."
Finally, here's the information regarding "tax home."
"You are traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away."
"Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home."
And finally, an excellent (a rare event, in my opinion, when it comes to IRS explanations) example:
"For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return
to Chicago every weekend.
You may not deduct any of your travel, meals or lodging in Milwaukee because that is your tax home.
Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located."
You'll see this in the code here: (26 U.S. Code § 162)
And this is all covered in IRS Publication 463.
Finally, they have a very readable one page "tax topic" on this.
Be looking at this and I'll see if I can be find the "Tax Topic" on business travel.
And ... let me know what questions you have...