Internal Revenue Code · 26 U.S.C.
§ 463. Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387
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. § 463
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- Repealed
- Cross-references
- cites 0; cited by 0 Code sections and 5 other regulations
Repealed. Pub. L. 100–203, title X, § 10201(a), Dec. 22, 1987, 101 Stat. 1330–387
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited in 5 regulations not issued under it
- § 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).
- § 1.404(a)-1T Questions and answers relating to deductibility of deferred compensation and deferred benefits for employees. (Temporary)
- § 1.404(b)-1T Method or arrangement of contributions, etc., deferring the receipt of compensation or providing for deferred benefits. (Temporary)
- § 1.404(d)-1T Questions and answers relating to deductibility of deferred compensation and deferred benefits for independent contractors. (Temporary)
- § 301.9100-16T Election to accrue vacation pay.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter E Accounting Periods and Methods of Accounting
- Part II METHODS OF ACCOUNTING
- Subpart C Taxable Year for Which Deductions Taken
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Section, added Pub. L. 93–625, § 4(a), Jan. 3, 1974, 88 Stat. 2109; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title V, § 561(a), July 18, 1984, 98 Stat. 901; Pub. L. 99–514, title XI, § 1165(a), Oct. 22, 1986, 100 Stat. 2511, related to deduction allowable for accrual basis taxpayers under section 162(a) of this title with respect to vacation pay.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to taxable years beginning after Dec. 31, 1987, see section 10201(c)(1) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 404 of this title.
Change in Method of Accounting Required by Pub. L. 100–203
Pub. L. 100–203, title X, § 10201(c)(2), Dec. 22, 1987, 101 Stat. 1330–388, provided that:
“In the case of any taxpayer who elected to have section 463 of the Internal Revenue Code of 1986 apply for such taxpayer’s last taxable year beginning before January 1, 1988, and who is required to change his method of accounting by reason of the amendments made by this section [amending sections 404, 419, and 461 of this title, repealing sections 81 and 463 of this title, and enacting provisions set out as a note under section 404 of this title]—“(A) such change shall be treated as initiated by the taxpayer,“(B) such change shall be treated as having been made with the consent of the Secretary, and“(C) the net amount of adjustments required by section 481 of such Code to be taken into account by the taxpayer—“(i) shall be reduced by the balance in the suspense account under section 463(c) of such Code as of the close of such last taxable year, and“(ii) shall be taken into account over the 4-taxable year period beginning with the taxable year following such last taxable year as follows:
“In the case of the:
The percentage taken into
account is:
1st year
25
2nd year
5
3rd year
35
4th year
35.
Notwithstanding subparagraph (C)(ii), if the period the adjustments are required to be taken into account under section 481 of such Code is less than 4 years, such adjustments shall be taken into account ratably over such shorter period.”