KEY POINTS OF IRS DEFINITION:

General Area of Business Activity: The IRS defines your tax home as the “entire city or general area” of your regular workplace or place of business, regardless of where your personal residence is located.

Multiple Workplaces: If you have multiple workplaces, your tax home is generally the location where you spend the most time and have the greatest business activity. For example, if you spend more time and conduct more business in New York compared to London, New York would be considered your tax home.
No Fixed Workplace: For those without a fixed workplace, such as itinerant workers or remote employees, your tax home may be the place where you regularly live. This can apply even if this location is not where you conduct the majority of your business activities.

Maintaining a Residence: To establish a tax home, you need to maintain a residence in that location and incur regular living expenses such as rent, mortgage, utilities, and other day-to-day expenses. Using a relative’s address or a nominal rental arrangement does not qualify as maintaining a tax home.

Travel Expense Deductions: The location of your tax home is important because it determines whether your travel expenses away from that location can be deducted as business expenses.
Distinction from Permanent Residence: Your tax home is distinct from your permanent residence or domicile. While your permanent residence is your long-term, permanent home where you intend to return, your tax home is your primary place of business or employment.
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