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Treasury Regulations · 26 CFR

§ 1.162(k)-1. Disallowance of deduction for reacquisition payments.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 162(k)

Cite as 26 CFR § 1.162(k)-1

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
August 30, 2006 by T.D. 9282
Issued under
26 U.S.C. § 162(k)
Length
204 words · about 1 min to read
Cross-references
cites 4 Code sections and 1 regulation; cited by 1
(a) In general. Except as provided in paragraph (b) of this section, no deduction otherwise allowable is allowed under Chapter 1 of the Internal Revenue Code for any amount paid or incurred by a corporation in connection with the reacquisition of its stock or the stock of any related person (as defined in section 465(b)(3)(C)). Amounts paid or incurred in connection with the reacquisition of stock include amounts paid by a corporation to reacquire its stock from an ESOP that are used in a manner described in section 404(k)(2)(A). See § 1.404(k)-3.
(b) Exceptions. Paragraph (a) of this section does not apply to any—
(1) Deduction allowable under section 163 (relating to interest);
(2) Deduction for amounts that are properly allocable to indebtedness and amortized over the term of such indebtedness;
(3) Deduction for dividends paid (within the meaning of section 561); or
(4) Amount paid or incurred in connection with the redemption of any stock in a regulated investment company that issues only stock which is redeemable upon the demand of the shareholder.
(c) Effective date. This section applies with respect to amounts paid or incurred on or after August 30, 2006.

[T.D. 9282, 71 FR 51473, Aug. 30, 2006]

Other regulations under § 162

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Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Regulations it cites

Cited by 1 other regulation

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Issued by T.D. 9282 (71 FR 51473)

Where it sits in 26 CFR

  1. Subchapter A Income tax
  2. Part 1 Income taxes
  3. Itemized Deductions for Individuals and Corporations

Nearby sections