Internal Revenue Code · 26 U.S.C.
§ 162. Trade or business expenses
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 162
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- September 2, 1958 by Pub. L. 85–866
- Last amended
- July 4, 2025 by Pub. L. 119–21
- Amendments
- 38 dated changes in the source credit
- Length
- 19 subsections · 7,460 words · about 32 min to read
- Defines
- 29 terms
- Cross-references
- cites 32; cited by 37 Code sections and 170 other regulations
- Regulations
- 34 issued under this section
No deduction shall be allowed under subsection (a) for any contribution or gift which would be allowable as a deduction under section 170 were it not for the percentage limitations, the dollar limitations, or the requirements as to the time of payment, set forth in such section.
No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment is unlawful under the Foreign Corrupt Practices Act of 1977. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or is unlawful under the Foreign Corrupt Practices Act of 1977) shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).
No deduction shall be allowed under subsection (a) for any payment (other than a payment described in paragraph (1)) made, directly or indirectly, to any person, if the payment constitutes an illegal bribe, illegal kickback, or other illegal payment under any law of the United States, or under any law of a State (but only if such State law is generally enforced), which subjects the payor to a criminal penalty or the loss of license or privilege to engage in a trade or business. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer. The burden of proof in respect of the issue, for purposes of this paragraph, as to whether a payment constitutes an illegal bribe, illegal kickback, or other illegal payment shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).
No deduction shall be allowed under subsection (a) for any kickback, rebate, or bribe made by any provider of services, supplier, physician, or other person who furnishes items or services for which payment is or may be made under the Social Security Act, or in whole or in part out of Federal funds under a State plan approved under such Act, if such kickback, rebate, or bribe is made in connection with the furnishing of such items or services or the making or receipt of such payments. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer.
For purposes of this subtitle, whenever the amount of capital contributions evidenced by a share of stock issued pursuant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718) exceeds the fair market value of the stock as of the issue date of such stock, the initial holder of the stock shall treat the excess as ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business.
No deduction shall be allowed under subsection (a) for the portion of dues or other similar amounts paid by the taxpayer to an organization which is exempt from tax under this subtitle which the organization notifies the taxpayer under section 6033(e)(1)(A)(ii) is allocable to expenditures to which paragraph (1) applies.
The term “influencing legislation” means any attempt to influence any legislation through communication with any member or employee of a legislative body, or with any government official or employee who may participate in the formulation of legislation.
In the case of any taxpayer engaged in the trade or business of conducting activities described in paragraph (1), paragraph (1) shall not apply to expenditures of the taxpayer in conducting such activities directly on behalf of another person (but shall apply to payments by such other person to the taxpayer for conducting such activities).
Paragraph (1) shall not apply to any in-house expenditures for any taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in paragraphs (1)(A) and (D).
Any amount paid or incurred for research for, or preparation, planning, or coordination of, any activity described in paragraph (1) shall be treated as paid or incurred in connection with such activity.
For reporting requirements and alternative taxes related to this subsection, see section 6033(e).
Except as provided in the following paragraphs of this subsection, no deduction otherwise allowable shall be allowed under this chapter for any amount paid or incurred (whether by suit, agreement, or otherwise) to, or at the direction of, a government or governmental entity in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law.
Subparagraph (A) shall not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation.
Paragraph (1) shall not apply to any amount paid or incurred by reason of any order of a court in a suit in which no government or governmental entity is a party.
Paragraph (1) shall not apply to any amount paid or incurred as taxes due.
An election under this subsection for any taxable year shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
This subsection shall not apply to any legislator whose place of residence within the legislative district which he represents is 50 or fewer miles from the capitol building of the State.
No deduction shall be allowed under subsection (a) for any expenses of an advertisement carried by a foreign broadcast undertaking and directed primarily to a market in the United States. This paragraph shall apply only to foreign broadcast undertakings located in a country which denies a similar deduction for the cost of advertising directed primarily to a market in the foreign country when placed with a United States broadcast undertaking.
For purposes of paragraph (1), the term “broadcast undertaking” includes (but is not limited to) radio and television stations.
Except as provided in paragraph (2), no deduction otherwise allowable shall be allowed under this chapter for any amount paid or incurred by a corporation in connection with the reacquisition of its stock or of the stock of any related person (as defined in section 465(b)(3)(C)).
Any amount paid or incurred in connection with the redemption of any stock in a regulated investment company which issues only stock which is redeemable upon the demand of the shareholder.
No deduction shall be allowed under paragraph (1) to the extent that the amount of such deduction exceeds the taxpayer’s earned income (within the meaning of section 401(c)) derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established.
In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in section 213(d)(10)) shall be taken into account under paragraph (1).
Any amount paid by a taxpayer for insurance to which paragraph (1) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 213(a).
The deduction allowable by reason of this subsection shall not be taken into account in determining an individual’s net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2 for taxable years beginning before January 1, 2010, or after December 31, 2010.
In the case of any publicly held corporation, no deduction shall be allowed under this chapter for applicable employee remuneration with respect to any covered employee to the extent that the amount of such remuneration for the taxable year with respect to such employee exceeds $1,000,000.
Except as otherwise provided in this paragraph, the term “applicable employee remuneration” means, with respect to any covered employee for any taxable year, the aggregate amount allowable as a deduction under this chapter for such taxable year (determined without regard to this subsection) for remuneration for services performed by such employee (whether or not during the taxable year).
The term “applicable employee remuneration” shall not include any remuneration payable under a written binding contract which was in effect on February 17, 1993, and which was not modified thereafter in any material respect before such remuneration is paid.
The dollar limitation contained in paragraph (1) shall be reduced (but not below zero) by the amount (if any) which would have been included in the applicable employee remuneration of the covered employee for the taxable year but for being disallowed under section 280G.
The dollar limitation contained in paragraph (1) with respect to any covered employee shall be reduced (but not below zero) by the amount of any payment (with respect to such employee) of the tax imposed by section 4985 directly or indirectly by the expatriated corporation (as defined in such section) or by any member of the expanded affiliated group (as defined in such section) which includes such corporation.
Remuneration shall not fail to be applicable employee remuneration merely because it is includible in the income of, or paid to, a person other than the covered employee, including after the death of the covered employee.
Except as provided in clause (ii), the term “applicable employer” means any employer from whom 1 or more troubled assets are acquired under a program established by the Secretary under section 101(a) of the Emergency Economic Stabilization Act of 2008 if the aggregate amount of the assets so acquired for all taxable years exceeds $300,000,000.
If the only sales of troubled assets by an employer under the program described in clause (i) are through 1 or more direct purchases (within the meaning of section 113(c) of the Emergency Economic Stabilization Act of 2008), such assets shall not be taken into account under clause (i) in determining whether the employer is an applicable employer for purposes of this paragraph.
Two or more persons who are treated as a single employer under subsection (b) or (c) of section 414 shall be treated as a single employer, except that in applying section 1563(a) for purposes of either such subsection, paragraphs (2) and (3) thereof shall be disregarded.
If an employee is a covered executive with respect to an applicable employer for any applicable taxable year, such employee shall be treated as a covered executive with respect to such employer for all subsequent applicable taxable years and for all subsequent taxable years in which deferred deduction executive remuneration with respect to services performed in all such applicable taxable years would (but for this paragraph) be deductible.
For purposes of this paragraph, the term “executive remuneration” means the applicable employee remuneration of the covered executive, as determined under paragraph (4) without regard to subparagraph (B) thereof. Such term shall not include any deferred deduction executive remuneration with respect to services performed in a prior applicable taxable year.
For purposes of this paragraph, the term “deferred deduction executive remuneration” means remuneration which would be executive remuneration for services performed in an applicable taxable year but for the fact that the deduction under this chapter (determined without regard to this paragraph) for such remuneration is allowable in a subsequent taxable year.
Rules similar to the rules of subparagraphs (D) and (E) of paragraph (4) shall apply for purposes of this paragraph.
The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this paragraph and the Emergency Economic Stabilization Act of 2008, including the extent to which this paragraph applies in the case of any acquisition, merger, or reorganization of an applicable employer.
For purposes of this paragraph, the term “disqualified taxable year” means, with respect to any employer, any taxable year for which such employer is a covered health insurance provider.
Two or more persons who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer, except that in applying section 1563(a) for purposes of any such subsection, paragraphs (2) and (3) thereof shall be disregarded.
For purposes of this paragraph, the term “applicable individual remuneration” means, with respect to any applicable individual for any disqualified taxable year, the aggregate amount allowable as a deduction under this chapter for such taxable year (determined without regard to this subsection) for remuneration (as defined in paragraph (4) without regard to subparagraph (B) thereof) for services performed by such individual (whether or not during the taxable year). Such term shall not include any deferred deduction remuneration with respect to services performed during the disqualified taxable year.
For purposes of this paragraph, the term “deferred deduction remuneration” means remuneration which would be applicable individual remuneration for services performed in a disqualified taxable year but for the fact that the deduction under this chapter (determined without regard to this paragraph) for such remuneration is allowable in a subsequent taxable year.
Rules similar to the rules of subparagraphs (D) and (E) of paragraph (4) shall apply for purposes of this paragraph.
The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this paragraph.
For purposes of this paragraph, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.
Paragraph (1) shall not apply to any group health plan which is not required under the laws of the State of New York (determined without regard to this subsection or other provisions of Federal law) to reimburse at the rates provided in paragraph (1).
For purposes of this subsection, the term “group health plan” means a plan of, or contributed to by, an employer or employee organization (including a self-insured plan) to provide health care (directly or otherwise) to any employee, any former employee, the employer, or any other individual associated or formerly associated with the employer in a business relationship, or any member of their family.
Notwithstanding paragraph (1)(A), if the expenses incurred by an employee for the use of a vehicle in performing services described in paragraph (1) exceed the qualified reimbursements for such expenses, such excess shall be taken into account in computing the miscellaneous itemized deductions of the employee under section 67.
For purposes of subsection (a)(2), in the case of an individual who performs services as a member of a reserve component of the Armed Forces of the United States at any time during the taxable year, such individual shall be deemed to be away from home in the pursuit of a trade or business for any period during which such individual is away from home in connection with such service.
No deduction shall be allowed for the applicable percentage of any FDIC premium paid or incurred by the taxpayer.
Paragraph (1) shall not apply to any taxpayer for any taxable year if the total consolidated assets of such taxpayer (determined as of the close of such taxable year) do not exceed $10,000,000,000.
For purposes of this subsection, the term “FDIC premium” means any assessment imposed under section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)).
For purposes of this subsection, the term “total consolidated assets” has the meaning given such term under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365).
Members of an expanded affiliated group shall be treated as a single taxpayer for purposes of applying this subsection.
A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this clause).
(Aug. 16, 1954, ch. 736, 68A Stat. 45; Pub. L. 85–866, title I, § 5(a), Sept. 2, 1958, 72 Stat. 1608; Pub. L. 86–779, §§ 7(b), 8(a), Sept. 14, 1960, 74 Stat. 1002, 1003; Pub. L. 87–834, §§ 3(a), 4(b), Oct. 16, 1962, 76 Stat. 973, 976; Pub. L. 91–172, title V, § 516(c)(2)(A), title IX, § 902(a), (b), Dec. 30, 1969, 83 Stat. 648, 710; Pub. L. 92–178, title III, § 310(a), Dec. 10, 1971, 85 Stat. 525; Pub. L. 94–455, title XIX, §§ 1901(c)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1803, 1834; Pub. L. 97–34, title I, § 127(a), Aug. 13, 1981, 95 Stat. 202; Pub. L. 97–35, title XXI, § 2146(b), Aug. 13, 1981, 95 Stat. 801; Pub. L. 97–51, § 139(b)(1), Oct. 1, 1981, 95 Stat. 967; Pub. L. 97–216, title II, § 215(a), July 18, 1982, 96 Stat. 194; Pub. L. 97–248, title I, § 128(b), title II, § 288(a), Sept. 3, 1982, 96 Stat. 366, 571; Pub. L. 98–369, div. A, title V, § 512(b), div. B, title III, § 2354(d), July 18, 1984, 98 Stat. 863, 1102; Pub. L. 98–573, title II, § 232(a), Oct. 30, 1984, 98 Stat. 2991; Pub. L. 99–272, title X, § 10001(a), (c), (d), Apr. 7, 1986, 100 Stat. 222, 223, 227; Pub. L. 99–509, title IX, §§ 9307(c)(2)(B), 9501(a)(1), (b)(1)(A), (2)(A), (c)(1), (d)(1), Oct. 21, 1986, 100 Stat. 1995, 2075–2077; Pub. L. 99–514, title VI, § 613(a), title XI, § 1161(a), title XVIII, § 1895(d)(1)(A), (2)(A), (3)(A), (4)(A), (5)(A), (6)(A), (7), Oct. 22, 1986, 100 Stat. 2251, 2509, 2936–2940; Pub. L. 100–647, title I, §§ 1011B(b)(1)–(3), 1018(t)(7)(B), title III, § 3011(b)(2), (3), Nov. 10, 1988, 102 Stat. 3488, 3589, 3624, 3625; Pub. L. 101–140, title II, § 203(a)(4), Nov. 8, 1989, 103 Stat. 830; Pub. L. 101–239, title VI, § 6202(b)(3)(A), title VII, §§ 7107(a)(1), (b), 7862(c)(3)(A), Dec. 19, 1989, 103 Stat. 2233, 2306, 2432; Pub. L. 101–508, title XI, §§ 11111(d)(2), 11410(a), Nov. 5, 1990, 104 Stat. 1388–413, 1388–479; Pub. L. 102–227, title I, § 110(a)(1), Dec. 11, 1991, 105 Stat. 1688; Pub. L. 102–486, title XIX, § 1938(a), Oct. 24, 1992, 106 Stat. 3033; Pub. L. 103–66, title XIII, §§ 13131(d)(2), 13174(a)(1), (b)(1), 13211(a), 13222(a), 13442(a), Aug. 10, 1993, 107 Stat. 435, 457, 469, 477, 568; Pub. L. 104–7, § 1(a), (b), Apr. 11, 1995, 109 Stat. 93; Pub. L. 104–188, title I, § 1704(p)(1)–(3), Aug. 20, 1996, 110 Stat. 1886; Pub. L. 104–191, title III, §§ 311(a), 322(b)(2)(B), Aug. 21, 1996, 110 Stat. 2053, 2060; Pub. L. 105–34, title IX, § 934(a), title XII, §§ 1203(a), 1204(a), title XVI, § 1602(c), Aug. 5, 1997, 111 Stat. 882, 994, 995, 1094; Pub. L. 105–206, title VI, § 6012(a), July 22, 1998, 112 Stat. 818; Pub. L. 105–277, div. J, title II, § 2002(a), Oct. 21, 1998, 112 Stat. 2681–901; Pub. L. 108–121, title I, § 109(a), Nov. 11, 2003, 117 Stat. 1341; Pub. L. 108–357, title III, § 318(a), (b), title VIII, § 802(b)(2), Oct. 22, 2004, 118 Stat. 1470, 1568; Pub. L. 110–343, div. A, title III, § 302(a), Oct. 3, 2008, 122 Stat. 3803; Pub. L. 111–148, title IX, § 9014(a), title X, § 10108(g)(1), Mar. 23, 2010, 124 Stat. 868, 913; Pub. L. 111–152, title I, § 1004(d)(2), (3), Mar. 30, 2010, 124 Stat. 1035; Pub. L. 111–240, title II, § 2042(a), Sept. 27, 2010, 124 Stat. 2560; Pub. L. 112–10, div. B, title VIII, § 1858(b)(3), Apr. 15, 2011, 125 Stat. 169; Pub. L. 113–295, div. A, title II, § 221(a)(23), (24), Dec. 19, 2014, 128 Stat. 4040; Pub. L. 115–97, title I, §§ 11002(d)(6), 13306(a)(1), 13307(a), 13308(a), 13311(a), 13531(a), 13601(a)–(d), Dec. 22, 2017, 131 Stat. 2061, 2126, 2129, 2132, 2153, 2155, 2156; Pub. L. 117–2, title IX, § 9708, Mar. 11, 2021, 135 Stat. 206; Pub. L. 119–21, title VII, § 70603(a), July 4, 2025, 139 Stat. 284.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- allocable limitation amount § 162(m)(7)(B)
- applicable employee remuneration § 162(m)(4)(A)
- applicable employee remuneration § 162(m)(4)(B)
- applicable employer § 162(m)(5)(B)(i)
- applicable individual § 162(m)(6)(F)
- applicable individual remuneration § 162(m)(6)(D)
- applicable percentage § 162(r)(3)
- applicable taxable year § 162(m)(5)(C)
- broadcast undertaking § 162(j)(2)
- controlled group § 162(m)(7)(D)
- covered employee § 162(m)(3)
- covered executive § 162(m)(5)(D)(i)
- covered executive branch official § 162(e)(5)
- covered health insurance provider § 162(m)(6)(C)(i)
- deferred deduction executive remuneration § 162(m)(5)(F)
- deferred deduction remuneration § 162(m)(6)(E)
- disqualified taxable year § 162(m)(6)(B)
- executive remuneration § 162(m)(5)(E)
- expanded affiliated group § 162(r)(6)(B)(i)
- FDIC premium § 162(r)(4)
- group health plan § 162(n)(3)
- in-house expenditures § 162(e)(4)(B)(ii)
- influencing legislation § 162(e)(3)(A)
- legislation § 162(e)(3)(B)
- publicly held corporation § 162(m)(2)
- qualified reimbursements § 162(o)(3)
- remuneration § 162(m)(4)(C)
- specified covered employee § 162(m)(7)(C)
- total consolidated assets § 162(r)(5)
Regulations under this section
Treasury regulations (26 CFR) issued under § 162
- § 1.162-1 Business expenses.
- § 1.162-2 Traveling expenses.
- § 1.162-3 Materials and supplies.
- § 1.162-4 Repairs.
- § 1.162-5 Expenses for education.
- § 1.162-7 Compensation for personal services.
- § 1.162-8 Treatment of excessive compensation.
- § 1.162-9 Bonuses to employees.
- § 1.162-10 Certain employee benefits.
- § 1.162-10T Questions and answers relating to the deduction of employee benefits under the Tax Reform Act of 1984; certain limits on amounts deductible (temporary).
- § 1.162-11 Rentals.
- § 1.162-12 Expenses of farmers.
- § 1.162-13 Depositors' guaranty fund.
- § 1.162-14 Expenditures for advertising or promotion of good will.
- § 1.162-15 Contributions, dues, etc.
- § 1.162-16 Cross reference.
- § 1.162-17 Reporting and substantiation of certain business expenses of employees.
- § 1.162-18 Illegal bribes and kickbacks.
- § 1.162-19 Capital contributions to Federal National Mortgage Association.
- § 1.162-20 Expenditures attributable to lobbying, political campaigns, attempts to influence legislation, etc., and certain advertising.
- § 1.162-21 Denial of deduction for certain fines, penalties, and other amounts.
- § 1.162-22 Treble damage payments under the antitrust laws.
- § 1.162-24 Travel expenses of state legislators.
- § 1.162-25 Deductions with respect to noncash fringe benefits.
- § 1.162-25T Deductions with respect to noncash fringe benefits (temporary).
- § 1.162-27 Certain employee remuneration in excess of $1,000,000 not deductible for taxable years beginning on or after January 1, 1994, and for taxable years beginning prior to January 1, 2018.
- § 1.162-28 Allocation of costs to lobbying activities.
- § 1.162-29 Influencing legislation.
- § 1.162-31 The $500,000 deduction limitation for remuneration provided by certain health insurance providers.
- § 1.162-32 Expenses paid or incurred for lodging when not traveling away from home.
- § 1.162-33 Certain employee remuneration in excess of $1,000,000 not deductible for taxable years beginning after December 31, 2017.
- § 1.162(k)-1 Disallowance of deduction for reacquisition payments.
- § 1.162(l)-0 Table of Contents.
- § 1.162(l)-1 Deduction for health insurance costs of self-employed individuals.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 32 other sections
- § 170 Charitable, etc., contributions and gifts
- § 7454 Burden of proof in fraud, foundation manager, and transferee cases
- § 6033(e)(1)(A)(ii) Returns by exempt organizations
- § 4911(e)(2) Tax on excess expenditures to influence legislation
- § 1256(g)(7) Section 1256 contracts marked to market
- § 6202 Establishment by regulations of mode or time of assessment
- § 465(b)(3)(C) Deductions limited to amount at risk
- § 163 Interest
- § 561 Definition of deduction for dividends paid
- § 401(c)(1) Qualified pension, profit-sharing, and stock bonus plans
- § 152(f)(1) Dependent defined
- § 7702B(c) Treatment of qualified long-term care insurance
- § 213(d)(10) Medical, dental, etc., expenses
- § 1402(a) Definitions
- § 1372(a) Partnership rules to apply for fringe benefit purposes
- § 3121 Definitions
- § 280G Golden parachute payments
- § 4985 Stock compensation of insiders in expatriated corporations
- § 414 Definitions and special rules
- § 1563(a) Definitions and special rules
- § 120 Repealed
- § 9832(b)(2) Definitions
- § 5000A(f) Requirement to maintain minimum essential coverage
- § 62(a)(2)(A) Adjusted gross income defined
Show 8 more
- § 67 2-percent floor on miscellaneous itemized deductions
- § 1(f)(3) Tax imposed
- § 1504(a) Definitions
- § 954(d)(3) Foreign base company income
- § 1237 Real property subdivided for sale
- § 1253 Transfers of franchises, trademarks, and trade names
- § 419 Treatment of funded welfare benefit plans
- § 404 Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
Cited by 37 Code sections
- § 35(g)(2) Health insurance costs of eligible individuals
- § 62(a)(2)(B) Adjusted gross income defined
- § 67(b)(13) 2-percent floor on miscellaneous itemized deductions
- § 83(h) Property transferred in connection with performance of services
- § 132(d) Certain fringe benefits
- § 170(f)(9) Charitable, etc., contributions and gifts
- § 179(d)(5)(B) Election to expense certain depreciable business assets
- § 183(c) Activities not engaged in for profit
- § 192(c)(5) Contributions to black lung benefit trust
- § 263(d) Capital expenditures
- § 274(b)(1) Disallowance of certain entertainment, etc., expenses
- § 280A(f)(4) Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.
- § 280G(e)(2)(A) Golden parachute payments
- § 402(l)(8) Taxability of beneficiary of employees’ trust
- § 404(a)(8)(C) Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
- § 409A(b)(3)(D)(ii) Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans
- § 421(a)(2) General rules
- § 465(c)(7)(C)(iii) Deductions limited to amount at risk
- § 527(e)(2) Political organizations
- § 542(d)(2)(A) Definition of personal holding company
- § 543(a)(3)(C) Personal holding company income
- § 545(b)(6) Undistributed personal holding company income
- § 691(b) Recipients of income in respect of decedents
- § 707(c) Transactions between partner and partnership
Show 13 more
- § 832(c)(1) Insurance company taxable income
- § 911(d)(3) Citizens or residents of the United States living abroad
- § 952(a)(4) Subpart F income defined
- § 964(a) Miscellaneous provisions
- § 988(e)(3)(A) Treatment of certain foreign currency transactions
- § 995(b)(1)(F)(iii) Taxation of DISC income to shareholders
- § 1054 Certain stock of Federal National Mortgage Association
- § 1253(d)(1)(A) Transfers of franchises, trademarks, and trade names
- § 1402(c) Definitions
- § 4960(c)(6) Tax on excess tax-exempt organization executive compensation
- § 6033(e)(1)(A)(i) Returns by exempt organizations
- § 6050X(a)(1) Information with respect to certain fines, penalties, and other amounts
- § 6051(g)(2)(C) Receipts for employees
Cited in 170 regulations not issued under it
- § 1.25A-5 Special rules relating to characterization and timing of payments.
- § 1.28-1 Credit for clinical testing expenses for certain drugs for rare diseases or conditions.
- § 1.36B-0 Table of contents.
- § 1.36B-4 Reconciling the premium tax credit with advance credit payments.
- § 1.41-2 Qualified research expenses.
- § 1.41-6 Aggregation of expenditures.
- § 1.44-3 Certificate by seller.
- § 1.45-7 Prevailing wage requirements.
- § 1.45G-1 Railroad track maintenance credit.
- § 1.45R-0 Table of contents.
- § 1.45R-5 Claiming the credit.
- § 1.45X-1 General rules applicable to the advanced manufacturing production credit.
- § 1.46-4 Limitations with respect to certain persons.
- § 1.46-7 Statutory provisions; plan requirements for taxpayers electing additional investment credit, etc.
- § 1.48-4 Election of lessor of new section 38 property to treat lessee as purchaser.
- § 1.57-1 Items of tax preference defined.
- § 1.61-3 Gross income derived from business.
- § 1.61-4 Gross income of farmers.
- § 1.61-5 Allocations by cooperative associations; per-unit retain certificates—tax treatment as to cooperatives and patrons.
- § 1.62-1T Adjusted gross income (temporary).
- § 1.67-1T 2-percent floor on miscellaneous itemized deductions (temporary).
- § 1.67-2T Treatment of pass-through entities (temporary).
- § 1.67-3T Allocation of expenses by real estate mortgage investment conduits (temporary).
- § 1.83-6 Deduction by employer.
Show 120 more
- § 1.120-1 Statutory subsistence allowance received by police.
- § 1.127-1 Amounts received under a qualified educational assistance program.
- § 1.132-0 Outline of regulations under section 132.
- § 1.132-1 Exclusion from gross income for certain fringe benefits.
- § 1.132-5 Working condition fringes.
- § 1.141-4 Private security or payment test.
- § 1.163(j)-0 Table of contents.
- § 1.163(j)-1 Definitions.
- § 1.163(j)-3 Relationship of the section 163(j) limitation to other provisions affecting interest.
- § 1.163(j)-9 Elections for excepted trades or businesses; safe harbor for certain REITs.
- § 1.163(j)-10 Allocation of interest expense, interest income, and other items of expense and gross income to an excepted trade or business.
- § 1.164-2 Deduction denied in case of certain taxes.
- § 1.165-6 Farming losses.
- § 1.167(a)-6 Depreciation in special cases.
- § 1.167(a)-11 Depreciation based on class lives and asset depreciation ranges for property placed in service after December 31, 1970.
- § 1.167(a)-12 Depreciation based on class lives for property first placed in service before January 1, 1971.
- § 1.170A-1 Charitable, etc., contributions and gifts; allowance of deduction.
- § 1.172-13 Product liability losses.
- § 1.173-1 Circulation expenditures.
- § 1.178-1 Depreciation or amortization of improvements on leased property and cost of acquiring a lease.
- § 1.179-2 Limitations on amount subject to section 179 election.
- § 1.179-4 Definitions.
- § 1.180-1 Expenditures by farmers for fertilizer, etc.
- § 1.182-3 Definition, exceptions, etc., relating to deductible expenditures.
- § 1.183-1 Activities not engaged in for profit.
- § 1.183-2 Activity not engaged in for profit defined.
- § 1.195-1 Election to amortize start-up expenditures.
- § 1.197-2 Amortization of goodwill and certain other intangibles.
- § 1.199A-1 Operational rules.
- § 1.199A-3 Qualified business income, qualified REIT dividends, and qualified PTP income.
- § 1.199A-4 Aggregation.
- § 1.199A-5 Specified service trades or businesses and the trade or business of performing services as an employee.
- § 1.212-1 Nontrade or nonbusiness expenses.
- § 1.217-1 Deduction for moving expenses paid or incurred in taxable years beginning before January 1, 1970.
- § 1.217-2 Deduction for moving expenses paid or incurred in taxable years beginning after December 31, 1969.
- § 1.248-1 Election to amortize organizational expenditures.
- § 1.262-1 Personal, living, and family expenses.
- § 1.263(a)-1 Capital expenditures; in general.
- § 1.263(a)-2 Amounts paid to acquire or produce tangible property.
- § 1.263(a)-3 Amounts paid to improve tangible property.
- § 1.263(a)-4 Amounts paid to acquire or create intangibles.
- § 1.263(a)-5 Amounts paid or incurred to facilitate an acquisition of a trade or business, a change in the capital structure of a business entity, and certain other transactions.
- § 1.263(e)-1 Expenditures in connection with certain railroad rolling stock.
- § 1.263A-1 Uniform capitalization of costs.
- § 1.264-1 Premiums on life insurance taken out in a trade or business.
- § 1.267(a)-1 Deductions disallowed.
- § 1.272-1 Expenditures relating to disposal of coal or domestic iron ore.
- § 1.274-2 Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or travel.
- § 1.274-3 Disallowance of deduction for gifts.
- § 1.274-4 Disallowance of certain foreign travel expenses.
- § 1.274-5T Substantiation requirements (temporary).
- § 1.274-11 Disallowance of deductions for certain entertainment, amusement, or recreation expenditures paid or incurred after December 31, 2017.
- § 1.274-12 Limitation on deductions for certain food or beverage expenses paid or incurred after December 31, 2017.
- § 1.274-13 Disallowance of deductions for certain qualified transportation fringe expenditures.
- § 1.274-14 Disallowance of deductions for certain transportation and commuting benefit expenditures.
- § 1.276-1 Disallowance of deductions for certain indirect contributions to political parties.
- § 1.280F-6 Special rules and definitions.
- § 1.280G-1 Golden parachute payments.
- § 1.274-5A Substantiation requirements.
- § 1.381(c)(11)-1 Contributions to pension plan, employees' annuity plans, and stock bonus and profit-sharing plans.
- § 1.381(c)(16)-1 Obligations of distributor or transferor corporation.
- § 1.382-9 Special rules under section 382 for corporations under the jurisdiction of a court in a title 11 or similar case.
- § 1.404(a)-1 Contributions of an employer to an employees' trust or annuity plan and compensation under a deferred payment plan; general rule.
- § 1.404(a)-1T Questions and answers relating to deductibility of deferred compensation and deferred benefits for employees. (Temporary)
- § 1.404(a)-3 Contributions of an employer to or under an employees' pension trust or annuity plan that meets the requirements of section 401(a); application of section 404(a)(1).
- § 1.404(a)-12 Contributions of an employer under a plan that does not meet the requirements of section 401(a); application of section 404(a)(5).
- § 1.404(b)-1T Method or arrangement of contributions, etc., deferring the receipt of compensation or providing for deferred benefits. (Temporary)
- § 1.404(c)-1 Certain negotiated plans; effect of section 404(c).
- § 1.404(d)-1T Questions and answers relating to deductibility of deferred compensation and deferred benefits for independent contractors. (Temporary)
- § 1.404(e)-1A Contributions on behalf of a self-employed individual to or under a qualified pension, annuity, or profit-sharing plan.
- § 1.404(g)-1 Deduction of employer liability payments.
- § 1.409A-0 Table of contents.
- § 1.409A-1 Definitions and covered plans.
- § 1.409A-2 Deferral elections.
- § 1.419-1T Treatment of welfare benefit funds. (Temporary)
- § 1.421-2 General rules.
- § 1.422-1 Incentive stock options; general rules.
- § 1.422-5 Permissible provisions.
- § 1.423-2 Employee stock purchase plan defined.
- § 1.446-1 General rule for methods of accounting.
- § 1.451-3 Timing of income inclusion for taxpayers with an applicable financial statement using an accrual method of accounting.
- § 1.451-4 Accounting for redemption of trading stamps and coupons.
- § 1.460-5 Cost allocation rules.
- § 1.461-1 General rule for taxable year of deduction.
- § 1.468B-3 Rules applicable to the transferor.
- § 1.468B-9 Disputed ownership funds.
- § 1.469-4 Definition of activity.
- § 1.469-4T Definition of activity (temporary).
- § 1.471-1 Need for inventories.
- § 1.471-3 Inventories at cost.
- § 1.501(r)-2 Failures to satisfy section 501(r).
- § 1.512(a)-1 Definition.
- § 1.513-1 Definition of unrelated trade or business.
- § 1.513-4 Certain sponsorship not unrelated trade or business.
- § 1.542-3 Stock ownership requirement.
- § 1.543-1 Personal holding company income.
- § 1.613-5 Taxable income from the property.
- § 1.691(b)-1 Allowance of deductions and credit in respect to decedents.
- § 1.707-1 Transactions between partner and partnership.
- § 1.709-1 Treatment of organization and syndication costs.
- § 1.736-1 Payments to a retiring partner or a deceased partner's successor in interest.
- § 1.752-7 Partnership assumption of partner's § 1.752-7 liability on or after June 24, 2003.
- § 1.804-4 Investment yield of a life insurance company.
- § 1.809-5 Deductions.
- § 1.817-4 Special rules.
- § 1.856-4 Rents from real property.
- § 1.861-3 Dividends and income inclusions under sections 951, 951A, and 1293 and associated section 78 dividends.
- § 1.861-10T Special allocations of interest expense (temporary).
- § 1.892-4 Commercial activities.
- § 1.911-2 Qualified individuals.
- § 1.936-6 Intangible property income when an election out is made: Cost sharing and profit split options; covered intangibles.
- § 1.937-1 Bona fide residency in a possession.
- § 1.952-1 Subpart F income defined.
- § 1.954-2 Foreign personal holding company income.
- § 1.964-1 Determination of the earnings and profits of a foreign corporation.
- § 1.988-1 Certain definitions and special rules.
- § 1.989(a)-1 Definition of a qualified business unit.
- § 1.994-1 Inter-company pricing rules for DISC's.
- § 1.995-2 Deemed distributions in qualified years.
- § 1.1054-1 Certain stock of Federal National Mortgage Association.
And 26 more; search the reader to find them.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 119–21Parts changed in 2025: (m)(7)
- Amended by Pub. L. 117–2Parts changed in 2021: (m)(3)(C)
- Amended by Pub. L. 115–97Parts changed in 2017: (a) (e)(2) (f) (m)(2) (m)(3) (m)(3)(A) (m)(3)(B) (m)(3)(C) (m)(4)(B) (m)(4)(F) (m)(4)(G) (m)(5)(E) (m)(5)(G) (m)(6)(D) (m)(6)(G) (o)(3) (q) (r) (s)
- Amended by Pub. L. 113–295Parts changed in 2014: (g) (h)(4)
- Amended by Pub. L. 112–10Parts changed in 2011: (a)
- Amended by Pub. L. 111–240Parts changed in 2010: (a) (l)(1) (l)(2)(B) (l)(4) (m)(6)
- Amended by Pub. L. 111–152
- Amended by Pub. L. 111–148
- Amended by Pub. L. 110–343Parts changed in 2008: (m)(5)
- Amended by Pub. L. 108–357Parts changed in 2004: (m)(4)(G) (o) (o)(2)
- Amended by Pub. L. 108–121Parts changed in 2003: (p)
- Amended by Pub. L. 105–277Parts changed in 1998: (a) (l)(1)(B)
- Amended by Pub. L. 105–206
- Amended by Pub. L. 105–34Parts changed in 1997: (a) (l)(1)(B) (l)(2)(B) (o)
- Amended by Pub. L. 104–191Parts changed in 1996: (k) (k)(1) (k)(2)(A) (l)(1) (l)(2)(C)
- Amended by Pub. L. 104–188
- Amended by Pub. L. 104–7Parts changed in 1995: (l)(1) (l)(6)
- Amended by Pub. L. 103–66Parts changed in 1993: (e) (l)(2)(B) (l)(3) (l)(6) (m) (n) (o)
- Amended by Pub. L. 102–486Parts changed in 1992: (a)
- Amended by Pub. L. 102–227Parts changed in 1991: (l)(6)
- Amended by Pub. L. 101–508Parts changed in 1990: (l)(3) (l)(6)
- Amended by Pub. L. 101–239Parts changed in 1989: (i) (k)(2)(B)(iv) (l)(2) (l)(5) (l)(6)
- Amended by Pub. L. 101–140
- Amended by Pub. L. 100–647Parts changed in 1988: (i)(2) (k) (k)(5)(B) (l) (m) (m)(2)(A) (m)(4) (n)
- Amended by Pub. L. 99–514Parts changed in 1986: (i)(1) (i)(2) (k) (k)(2)(A) (k)(2)(B)(i) (k)(2)(B)(i)(II) (k)(2)(B)(i)(III) (k)(2)(B)(iii) (k)(2)(B)(iv) (k)(2)(B)(iv)(I) (k)(2)(B)(iv)(II) (k)(2)(B)(v) (k)(3) (k)(5)(B) (k)(6)(B) (k)(6)(C) (k)(6)(D)(i) (k)(7)(B)(iii) (k)(7)(B)(iv) (l) (m)
- Amended by Pub. L. 99–509
- Amended by Pub. L. 99–272
- Amended by Pub. L. 98–573Parts changed in 1984: (i)(2) (j) (j)(3) (k)
- Amended by Pub. L. 98–369
- Amended by Pub. L. 97–248Parts changed in 1982: (a) (c)(1) (h) (i) (j)
- Amended by Pub. L. 97–216
- Amended by Pub. L. 97–51Parts changed in 1981: (a) (h) (i)
- Amended by Pub. L. 97–34, Pub. L. 97–35
- Amended by Pub. L. 94–455Parts changed in 1976: (a) (c)
- Amended by Pub. L. 92–178Parts changed in 1971: (c) (c)(2) (c)(3)
- Amended by Pub. L. 91–172Parts changed in 1969: (c) (f) (h)
- Amended by Pub. L. 87–834Parts changed in 1962: (a)(2) (e)
- Amended by Pub. L. 86–779Parts changed in 1960: (b) (d)
- Enacted by Pub. L. 85–866Parts changed in 1958: (c)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part VI ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS
Nearby sections
- § 161 Allowance of deductions
- § 162 Trade or business expenses
- § 163 Interest
- § 164 Taxes
- § 165 Losses
- § 166 Bad debts
Official notes
The Law Revision Counsel's notes for this section (amendments, effective dates and related laws) are long, so they have their own page.