-CITE-
26 USC Subchapter B - Computation of Taxable Income 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
-HEAD-
SUBCHAPTER B - COMPUTATION OF TAXABLE INCOME
-MISC1-
Part
I. Definition of gross income, adjusted gross income,
taxable income, etc.
II. Items specifically included in gross income.
III. Items specifically excluded from gross income.
IV. Determination of marital status.(!1)
V. Deductions for personal exemptions.
VI. Itemized deductions for individuals and corporations.
VII. Additional itemized deductions for individuals.
VIII. Special deductions for corporations.
IX. Items not deductible.
X. Terminal railroad corporations and their shareholders.
XI. Special rules relating to corporate preference items.
AMENDMENTS
1982 - Pub. L. 97-248, title II, Sec. 204(c)(2), Sept. 3, 1982,
96 Stat. 427, added item for part XI.
1977 - Pub. L. 95-30, title I, Sec. 101(e)(3), May 23, 1977, 91
Stat. 135, substituted "Determination of marital status" for
"Standard deduction for individuals" in item for part IV.
1976 - Pub. L. 94-455, title XIX, Sec. 1901(b)(4)(C), Oct. 4,
1976, 90 Stat. 1793, substituted "taxable income, etc." for "and
taxable income." in item for part I.
1962 - Pub. L. 87-870, Sec. 1(b), Oct. 23, 1962, 76 Stat. 1160,
added item for part X.
-FOOTNOTE-
(!1) Part heading amended by Pub. L. 99-514 without corresponding
amendment of analysis.
-End-
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26 USC PART I - DEFINITION OF GROSS INCOME, ADJUSTED
GROSS INCOME, TAXABLE INCOME, ETC. 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-MISC1-
Sec.
61. Gross income defined.
62. Adjusted gross income defined.
63. Taxable income defined.
64. Ordinary income defined.
65. Ordinary loss defined.
66. Treatment of community income.
67. 2-percent floor on miscellaneous itemized deductions.
68. Overall limitation on itemized deductions.
AMENDMENTS
1990 - Pub. L. 101-508, title XI, Sec. 11103(d), Nov. 5, 1990,
104 Stat. 1388-407, added item 68.
1986 - Pub. L. 99-514, title I, Sec. 132(d), Oct. 22, 1986, 100
Stat. 2116, added item 67.
1984 - Pub. L. 98-369, div. A, title IV, Sec. 424(b)(2)(C), July
18, 1984, 98 Stat. 803, struck out "where spouses live apart" in
item 66.
1980 - Pub. L. 96-605, title I, Sec. 101(b), Dec. 28, 1980, 94
Stat. 3522, added item 66.
1976 - Pub. L. 94-455, title XIX, Sec. 1901(b)(4)(A), (B), Oct.
4, 1976, 90 Stat. 1793, substituted "TAXABLE INCOME, ETC." for "AND
TAXABLE INCOME" in part heading, and added items 64 and 65.
-End-
-CITE-
26 USC Sec. 61 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 61. Gross income defined
-STATUTE-
(a) General definition
Except as otherwise provided in this subtitle, gross income means
all income from whatever source derived, including (but not limited
to) the following items:
(1) Compensation for services, including fees, commissions,
fringe benefits, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(4) Interest;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Alimony and separate maintenance payments;
(9) Annuities;
(10) Income from life insurance and endowment contracts;
(11) Pensions;
(12) Income from discharge of indebtedness;
(13) Distributive share of partnership gross income;
(14) Income in respect of a decedent; and
(15) Income from an interest in an estate or trust.
(b) Cross references
For items specifically included in gross income, see part II
(sec. 71 and following). For items specifically excluded from
gross income, see part III (sec. 101 and following).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 98-369, div. A,
title V, Sec. 531(c), July 18, 1984, 98 Stat. 884.)
-MISC1-
AMENDMENTS
1984 - Subsec. (a)(1). Pub. L. 98-369 inserted reference to
fringe benefits.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section
531(h) of Pub. L. 98-369, set out as an Effective Date note under
section 132 of this title.
TERMINATION DATE OF 1978 AMENDMENT
Pub. L. 95-615, Sec. 210(a), Nov. 8, 1978, 92 Stat. 3109,
provided that: "Title I of this Act [probably means sections 1 to 8
of Pub. L. 95-615, see Short Title of 1978 Amendment note under
section 1 of this title] (other than sections 4 and 5 thereof)
[amending section 167 of this title, enacting provisions set out as
notes under this section and sections 61 and 62 of this title, and
amending provisions set out as notes under sections 117, 167, and
382 of this title] shall cease to have effect on the day after the
date of the enactment of this Act [Nov. 8, 1978]."
REGULATIONS
Pub. L. 95-427, Sec. 1, Oct. 7, 1978, 92 Stat. 996, as amended by
Pub. L. 96-167, Sec. 1, Dec. 29, 1979, 93 Stat. 1275; Pub. L.
97-34, title VIII, Sec. 801, Aug. 13, 1981, 95 Stat. 349; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) In General. - No fringe benefit regulation shall be issued -
"(1) in final form on or after May 1, 1978, and on or before
December 31, 1983, or
"(2) in proposed or final form on or after May 1, 1978, if such
regulation has an effective date on or before December 31, 1983.
"(b) Definition of Fringe Benefit Regulation. - For purposes of
subsection (a), the term 'fringe benefit regulation' means a
regulation providing for the inclusion of any fringe benefit in
gross income by reason of section 61 of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954]."
Pub. L. 95-615, Sec. 3, Nov. 8, 1978, 92 Stat. 3097, as amended
by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided
that no regulations be issued in final form on or after Oct. 1,
1977, and before July 1, 1978, providing for inclusion of any
fringe benefit in gross income by reason of section 61 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954], ceased to
have effect on the day after Nov. 8, 1978, pursuant to section
210(a) of that Act.
NO GAIN RECOGNIZED FROM NET GIFTS MADE BEFORE MARCH 4, 1981
Section 1026 of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) In General. - In the case of any transfer of property
subject to gift tax made before March 4, 1981, for purposes of
subtitle A of the Internal Revenue Code of 1986 [formerly I.R.C.
1954, 26 U.S.C. 1 et seq.], gross income of the donor shall not
include any amount attributable to the donee's payment of (or
agreement to pay) any gift tax imposed with respect to such gift.
"(b) Gift Tax Defined. - For purposes of subsection (a), the term
'gift tax' means -
"(1) the tax imposed by chapter 12 of such Code [26 U.S.C. 2501
et seq.], and
"(2) any tax imposed by a State (or the District of Columbia)
on transfers by gifts.
"(c) Statute of Limitations. - If refund or credit of any
overpayment of tax resulting from subsection (a) is prevented on
the date of the enactment of this Act [July 18, 1984] (or at any
time within 1 year after such date) by the operation of any law or
rule of law (including res judicata), refund or credit of such
overpayment (to the extent attributable to subsection (a)) may
nevertheless be made or allowed if claim therefor is filed within 1
year after the date of the enactment of this Act."
PAYMENT-IN-KIND TAX TREATMENT ACT OF 1983
Pub. L. 98-4, Mar. 11, 1983, 97 Stat. 7, as amended by Pub. L.
98-369, div. A, title X, Sec. 1061(a), July 18, 1984, 98 Stat.
1046; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub.
L. 100-647, title VI, Sec. 6252(a)(1), Nov. 10, 1988, 102 Stat.
3752, provided that:
"SECTION 1. SHORT TITLE.
"This Act may be cited as the 'Payment-in-Kind Tax Treatment Act
of 1983'.
"SEC. 2. INCOME TAX TREATMENT OF AGRICULTURAL COMMODITIES
RECEIVED UNDER A 1983 PAYMENT-IN-KIND PROGRAM.
"(a) Income Tax Deferral, Etc. - Except as otherwise provided in
this Act, for purposes of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] -
"(1) a qualified taxpayer shall not be treated as having
realized income when he receives a commodity under a 1983
payment-in-kind program,
"(2) such commodity shall be treated as if it were produced by
such taxpayer, and
"(3) the unadjusted basis of such commodity in the hands of
such taxpayer shall be zero.
"(b) Effective Date. - This section shall apply to taxable years
ending after December 31, 1982, but only with respect to
commodities received for the 1983 crop year.
"SEC. 3. LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM TREATED
AS USED IN FARMING BUSINESS, ETC.
"(a) General Rule. - For purposes of the provisions specified in
subsection (b), in the case of any land diverted from the
production of an agricultural commodity under a 1983
payment-in-kind program -
"(1) such land shall be treated as used during the 1983 crop
year by the qualified taxpayer in the active conduct of the trade
or business of farming, and
"(2) any qualified taxpayer who materially participates in the
diversion and devotion to conservation uses required under a 1983
payment-in-kind program shall be treated as materially
participating in the operation of such land during such crop
year.
"(b) Provisions to Which Subsection (a) Applies. - The provisions
specified in this subsection are -
"(1) section 2032A of the Internal Revenue Code of 1986
(relating to valuation of certain farm, etc., real property),
"(2) section 6166 of such Code (relating to extension of time
for payment of estate tax where estate consists largely of
interest in closely held business),
"(3) chapter 2 of such Code (relating to tax on self-employment
income), and
"(4) title II of the Social Security Act [42 U.S.C. 401 et
seq.] (relating to Federal old-age, survivors, and disability
insurance benefits).
"SEC. 4. ANTIABUSE RULES.
"(a) General Rule. - In the case of any person, sections 2 and 3
of this Act shall not apply with respect to any land acquired by
such person after February 23, 1983, unless such land was acquired
in a qualified acquisition.
"(b) Qualified Acquisition. - For purposes of this section, the
term 'qualified acquisition' means any acquisition -
"(1) by reason of the death of a qualified transferor,
"(2) by reason of a gift from a qualified transferor, or
"(3) from a qualified transferor who is a member of the family
of the person acquiring the land.
"(c) Definitions and Special Rules. - For purposes of this
section -
"(1) Qualified transferor. - The term 'qualified transferor'
means any person -
"(A) who held the land on February 23, 1983, or
"(B) who acquired the land after February 23, 1983, in a
qualified acquisition.
"(2) Member of family. - The term 'member of the family' has
the meaning given such term by section 2032A(e)(2) of the
Internal Revenue Code of 1986.
"(3) Mere change in form of business. - Subsection (a) shall
not apply to any change in ownership by reason of a mere change
in the form of conducting the trade or business so long as the
land is retained in such trade or business and the person holding
the land before such change retains a direct or indirect
80-percent interest in such land.
"(4) Treatment of certain acquisitions of right to the crop. -
The acquisition of a direct or indirect interest in 80 percent or
more of the crop from any land shall be treated as an acquisition
of such land.
"SEC. 5. DEFINITIONS AND SPECIAL RULES.
"(a) General Rule. - For purposes of this Act -
"(1) 1983 payment-in-kind program. - The term '1983
payment-in-kind program' means any program for the 1983 crop year
-
"(A) under which the Secretary of Agriculture (or his
delegate) makes payments in kind of any agricultural commodity
to any person in return for -
"(i) the diversion of farm acreage from the production of
an agricultural commodity, and
"(ii) the devotion of such acreage to conservation uses,
and
"(B) which the Secretary of Agriculture certifies to the
Secretary of the Treasury as being described in subparagraph
(A).
"(2) Crop year. - The term '1983 crop year' means the crop year
for any crop the planting or harvesting period for which occurs
during 1983. The term '1984 crop year' means the crop year for
wheat the planting and harvesting period for which occurs during
1984.
"(3) Qualified taxpayer. - The term 'qualified taxpayer' means
any producer of agricultural commodities (within the meaning of
the 1983 payment-in-kind programs) who receives any agricultural
commodity in return for meeting the requirements of clauses (i)
and (ii) of paragraph (1)(A).
"(4) Receipt includes right to receive, etc. - A right to
receive (or other constructive receipt of) a commodity shall be
treated the same as actual receipt of such commodity.
"(5) Amounts received by the taxpayer as reimbursement for
storage. - A qualified taxpayer reporting on the cash receipts
and disbursements method of accounting shall not be treated as
being entitled to receive any amount as reimbursement for storage
of commodities received under a 1983 payment-in-kind program
until such amount is actually received by the taxpayer.
"(6) Commodity credit loans treated separately. - Subsection
(a) of section 2 shall apply to the receipt of any commodity
under a 1983 payment-in-kind program separately from, and without
taking into account, any related transaction or series of
transactions involving the satisfaction of loans from the
Commodity Credit Corporation.
"(b) Extension to Wheat Planted and Harvested in 1984. - In the
case of wheat -
"(1) any reference in this Act to the 1983 crop year shall
include a reference to the 1984 crop year, and
"(2) any reference to the 1983 payment-in-kind program shall
include a reference to any program for the 1984 year for wheat
which meets the requirements of subparagraphs (A) and (B) of
subsection (a)(1).
"(c) Regulations. - The Secretary of the Treasury or his delegate
(after consultation with the Secretary of Agriculture) shall
prescribe such regulations as may be necessary to carry out the
purposes of this Act, including (but not limited to) such
regulations as may be necessary to carry out the purposes of this
Act where the commodity is received by a cooperative on behalf of
the qualified taxpayer."
[Section 1061(b) of Pub. L. 98-369 provided that: "The amendments
made by this section [amending Pub. L. 98-4 set out above] shall
apply with respect to commodities received for the 1984 crop year
(as defined in section 5(a)(2) of the Payment-in-Kind Tax Treatment
Act of 1983 [Pub. L. 98-4, set out above] as amended by subsection
(a))."]
CANCELLATION OF CERTAIN STUDENT LOANS
Pub. L. 94-455, title XXI, Sec. 2117, Oct. 4, 1976, 90 Stat.
1911, as amended by Pub. L. 95-600, title I, Sec. 162, Nov. 6,
1978, 92 Stat. 2810; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that no amount be included in gross income of
an individual for purposes of 26 U.S.C. 61 by reason of the
discharge made before Jan. 1, 1983 of the indebtedness of the
individual under a student loan if the discharge was pursuant to a
provision of the loan under which the indebtedness of the
individual would be discharged if the individual worked for a
certain period of time in certain geographical areas or for certain
classes of employers.
REGULATIONS RELATING TO TAX TREATMENT OF CERTAIN PREPUBLICATION
EXPENDITURES OF PUBLISHERS
Pub. L. 94-455, title XXI, Sec. 2119, Oct. 4, 1976, 90 Stat.
1912, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
"(a) General Rule. - With respect to taxable years beginning on
or before the date on which regulations dealing with prepublication
expenditures are issued after the date of the enactment of this Act
[Oct. 4, 1976], the application of sections 61 (as it relates to
cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] to any prepublication
expenditure shall be administered -
"(1) without regard to Revenue Ruling 73-395, and
"(2) in the manner in which such sections were applied
consistently by the taxpayer to such expenditures before the date
of the issuance of such revenue ruling.
"(b) Regulations To Be Prospective Only. - Any regulations issued
after the date of the enactment of this Act [Oct. 4, 1976] which
deal with the application of sections 61 (as it relates to cost of
goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of
1986 to prepublication expenditures shall apply only with respect
to taxable years beginning after the date on which such regulations
are issued.
"(c) Prepublication Expenditures Defined. - For purposes of this
section, the term 'prepublication expenditures' means expenditures
paid or incurred by the taxpayer (in connection with his trade or
business of publishing) for the writing, editing, compiling,
illustrating, designing, or other development or improvement of a
book, teaching aid, or similar product."
REIMBURSEMENT OF MOVING EXPENSES OF EMPLOYEES OF CERTAIN
CORPORATIONS EXCLUDED FROM GROSS INCOME; CLAIM FOR REFUND OR
CREDIT; LIMITATIONS; INTEREST
Pub. L. 86-780, Sec. 5, Sept. 14, 1960, 74 Stat. 1013, provided
for the exclusion from gross income of any amount received after
Dec. 31, 1949, and before Oct. 1, 1955, by employees of certain
corporations as reimbursement for moving expenses, and the refund
or credit of any overpayments.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 208A, 305, 351, 354, 355,
356, 408, 671, 707, 6103 of this title.
-End-
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26 USC Sec. 62 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 62. Adjusted gross income defined
-STATUTE-
(a) General rule
For purposes of this subtitle, the term "adjusted gross income"
means, in the case of an individual, gross income minus the
following deductions:
(1) Trade and business deductions
The deductions allowed by this chapter (other than by part VII
of this subchapter) which are attributable to a trade or business
carried on by the taxpayer, if such trade or business does not
consist of the performance of services by the taxpayer as an
employee.
(2) Certain trade and business deductions of employees
(A) Reimbursed expenses of employees
The deductions allowed by part VI (section 161 and following)
which consist of expenses paid or incurred by the taxpayer, in
connection with the performance by him of services as an
employee, under a reimbursement or other expense allowance
arrangement with his employer. The fact that the reimbursement
may be provided by a third party shall not be determinative of
whether or not the preceding sentence applies.
(B) Certain expenses of performing artists
The deductions allowed by section 162 which consist of
expenses paid or incurred by a qualified performing artist in
connection with the performances by him of services in the
performing arts as an employee.
(C) Certain expenses of officials
The deductions allowed by section 162 which consist of
expenses paid or incurred with respect to services performed by
an official as an employee of a State or a political
subdivision thereof in a position compensated in whole or in
part on a fee basis.
(D) Certain expenses of elementary and secondary school
teachers
In the case of taxable years beginning during 2002 or 2003,
the deductions allowed by section 162 which consist of
expenses, not in excess of $250, paid or incurred by an
eligible educator in connection with books, supplies (other
than nonathletic supplies for courses of instruction in health
or physical education), computer equipment (including related
software and services) and other equipment, and supplementary
materials used by the eligible educator in the classroom.
(E) Certain expenses of members of reserve components of the
Armed Forces of the United States
The deductions allowed by section 162 which consist of
expenses, determined at a rate not in excess of the rates for
travel expenses (including per diem in lieu of subsistence)
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, paid or incurred by
the taxpayer in connection with the performance of services by
such taxpayer as a member of a reserve component of the Armed
Forces of the United States for any period during which such
individual is more than 100 miles away from home in connection
with such services.
(3) Losses from sale or exchange of property
The deductions allowed by part VI (sec. 161 and following) as
losses from the sale or exchange of property.
(4) Deductions attributable to rents and royalties
The deductions allowed by part VI (sec. 161 and following), by
section 212 (relating to expenses for production of income), and
by section 611 (relating to depletion) which are attributable to
property held for the production of rents or royalties.
(5) Certain deductions of life tenants and income beneficiaries
of property
In the case of a life tenant of property, or an income
beneficiary of property held in trust, or an heir, legatee, or
devisee of an estate, the deduction for depreciation allowed by
section 167 and the deduction allowed by section 611.
(6) Pension, profit-sharing, and annuity plans of self-employed
individuals
In the case of an individual who is an employee within the
meaning of section 401(c)(1), the deduction allowed by section
404.
(7) Retirement savings
The deduction allowed by section 219 (relating to deduction of
certain retirement savings).
[(8) Repealed. Pub. L. 104-188, title I, Sec. 1401(b)(4), Aug.
20, 1996, 110 Stat. 1788]
(9) Penalties forfeited because of premature withdrawal of funds
from time savings accounts or deposits
The deductions allowed by section 165 for losses incurred in
any transaction entered into for profit, though not connected
with a trade or business, to the extent that such losses include
amounts forfeited to a bank, mutual savings bank, savings and
loan association, building and loan association, cooperative bank
or homestead association as a penalty for premature withdrawal of
funds from a time savings account, certificate of deposit, or
similar class of deposit.
(10) Alimony
The deduction allowed by section 215.
(11) Reforestation expenses
The deduction allowed by section 194.
(12) Certain required repayments of supplemental unemployment
compensation benefits
The deduction allowed by section 165 for the repayment to a
trust described in paragraph (9) or (17) of section 501(c) of
supplemental unemployment compensation benefits received from
such trust if such repayment is required because of the receipt
of trade readjustment allowances under section 231 or 232 of the
Trade Act of 1974 (19 U.S.C. 2291 and 2292).
(13) Jury duty pay remitted to employer
Any deduction allowable under this chapter by reason of an
individual remitting any portion of any jury pay to such
individual's employer in exchange for payment by the employer of
compensation for the period such individual was performing jury
duty. For purposes of the preceding sentence, the term "jury pay"
means any payment received by the individual for the discharge of
jury duty.
(14) Deduction for clean-fuel vehicles and certain refueling
property
The deduction allowed by section 179A.
(15) Moving expenses
The deduction allowed by section 217.
(16) Archer MSAs
The deduction allowed by section 220.
(17) Interest on education loans
The deduction allowed by section 221.
(18) Higher education expenses
The deduction allowed by section 222.
Nothing in this section shall permit the same item to be deducted
more than once.
(19) Health savings accounts
The deduction allowed by section 223.
(b) Qualified performing artist
(1) In general
For purposes of subsection (a)(2)(B), the term "qualified
performing artist" means, with respect to any taxable year, any
individual if -
(A) such individual performed services in the performing arts
as an employee during the taxable year for at least 2
employers,
(B) the aggregate amount allowable as a deduction under
section 162 in connection with the performance of such services
exceeds 10 percent of such individual's gross income
attributable to the performance of such services, and
(C) the adjusted gross income of such individual for the
taxable year (determined without regard to subsection
(a)(2)(B)) does not exceed $16,000.
(2) Nominal employer not taken into account
An individual shall not be treated as performing services in
the performing arts as an employee for any employer during any
taxable year unless the amount received by such individual from
such employer for the performance of such services during the
taxable year equals or exceeds $200.
(3) Special rules for married couples
(A) In general
Except in the case of a husband and wife who lived apart at
all times during the taxable year, if the taxpayer is married
at the close of the taxable year, subsection (a)(2)(B) shall
apply only if the taxpayer and his spouse file a joint return
for the taxable year.
(B) Application of paragraph (1)
In the case of a joint return -
(i) paragraph (1) (other than subparagraph (C) thereof)
shall be applied separately with respect to each spouse, but
(ii) paragraph (1)(C) shall be applied with respect to
their combined adjusted gross income.
(C) Determination of marital status
For purposes of this subsection, marital status shall be
determined under section 7703(a).
(D) Joint return
For purposes of this subsection, the term "joint return"
means the joint return of a husband and wife made under section
6013.
(c) Certain arrangements not treated as reimbursement arrangements
For purposes of subsection (a)(2)(A), an arrangement shall in no
event be treated as a reimbursement or other expense allowance
arrangement if -
(1) such arrangement does not require the employee to
substantiate the expenses covered by the arrangement to the
person providing the reimbursement, or
(2) such arrangement provides the employee the right to retain
any amount in excess of the substantiated expenses covered under
the arrangement.
The substantiation requirements of the preceding sentence shall not
apply to any expense to the extent that substantiation is not
required under section 274(d) for such expense by reason of the
regulations prescribed under the 2nd sentence thereof.
(d) Definition; special rules
(1) Eligible educator
(A) In general
For purposes of subsection (a)(2)(D), the term "eligible
educator" means, with respect to any taxable year, an
individual who is a kindergarten through grade 12 teacher,
instructor, counselor, principal, or aide in a school for at
least 900 hours during a school year.
(B) School
The term "school" means any school which provides elementary
education or secondary education (kindergarten through grade
12), as determined under State law.
(2) Coordination with exclusions
A deduction shall be allowed under subsection (a)(2)(D) for
expenses only to the extent the amount of such expenses exceeds
the amount excludable under section 135, 529(c)(1), or 530(d)(2)
for the taxable year.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 87-792, Sec. 7(b),
Oct. 10, 1962, 76 Stat. 828; Pub. L. 88-272, title II, Sec. 213(b),
Feb. 26, 1964, 78 Stat. 52; Pub. L. 91-172, title V, Sec. 531(b),
Dec. 30, 1969, 83 Stat. 655; Pub. L. 93-406, title II, Secs.
2002(a)(2), 2005(c)(9), Sept. 2, 1974, 88 Stat. 959, 992; Pub. L.
93-483, Sec. 6(a), Oct. 26, 1974, 88 Stat. 1458; Pub. L. 94-455,
title V, Sec. 502(a), title XV, Sec. 1501(b)(1), title XIX, Sec.
1901(a)(8), (9), Oct. 4, 1976, 90 Stat. 1559, 1735, 1765; Pub. L.
95-615, Sec. 203(b), Nov. 8, 1978, 92 Stat. 3106; Pub. L. 96-451,
title III, Sec. 301(b), Oct. 14, 1980, 94 Stat. 1990; Pub. L.
96-608, Sec. 3(a), Dec. 28, 1980, 94 Stat. 3551; Pub. L. 97-34,
title I, Secs. 103(b), 112(b)(2), title III, Sec. 311(h)(1), Aug.
13, 1981, 95 Stat. 187, 195, 282; Pub. L. 97-354, Sec. 5(a)(17),
Oct. 19, 1982, 96 Stat. 1693; Pub. L. 98-369, div. A, title IV,
Sec. 491(d)(2), July 18, 1984, 98 Stat. 849; Pub. L. 99-514, title
I, Secs. 131(b)(1), 132(b), (c), title III, Sec. 301(b)(1), title
XVIII, Sec. 1875(c)(3), Oct. 22, 1986, 100 Stat. 2113, 2115, 2116,
2217, 2894; Pub. L. 100-485, title VII, Sec. 702(a), Oct. 13, 1988,
102 Stat. 2426; Pub. L. 100-647, title I, Sec. 1001(b)(3)(A), title
VI, Sec. 6007(b), Nov. 10, 1988, 102 Stat. 3349, 3687; Pub. L.
101-508, title XI, Sec. 11802(e)(1), Nov. 5, 1990, 104 Stat.
1388-530; Pub. L. 102-318, title V, Sec. 521(b)(2), July 3, 1992,
106 Stat. 310; Pub. L. 102-486, title XIX, Sec. 1913(a)(2), Oct.
24, 1992, 106 Stat. 3019; Pub. L. 103-66, title XIII, Sec.
13213(c)(1), Aug. 10, 1993, 107 Stat. 474; Pub. L. 104-188, title
I, Sec. 1401(b)(4), Aug. 20, 1996, 110 Stat. 1788; Pub. L. 104-191,
title III, Sec. 301(b), Aug. 21, 1996, 110 Stat. 2048; Pub. L.
105-34, title II, Sec. 202(b), title IX, Sec. 975(a), Aug. 5, 1997,
111 Stat. 808, 898; Pub. L. 106-554, Sec. 1(a)(7) [title II, Sec.
202(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A-629; Pub. L.
107-16, title IV, Sec. 431(b), June 7, 2001, 115 Stat. 68; Pub. L.
107-147, title IV, Sec. 406(a), (b), Mar. 9, 2002, 116 Stat. 43;
Pub. L. 108-121, title I, Sec. 109(b), Nov. 11, 2003, 117 Stat.
1341; Pub. L. 108-173, title XII, Sec. 1201(b), Dec. 8, 2003, 117
Stat. 2476.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2003 - Subsec. (a)(2)(E). Pub. L. 108-121 added subpar. (E).
Subsec. (a)(19). Pub. L. 108-173 added par. (19).
2002 - Subsec. (a)(2)(D). Pub. L. 107-147, Sec. 406(a), added
subpar. (D).
Subsec. (d). Pub. L. 107-147, Sec. 406(b), added subsec. (d).
2001 - Subsec. (a)(18). Pub. L. 107-16, Secs. 431(b), 901,
temporarily added par. (18). See Effective and Termination Dates of
2001 Amendment note below.
2000 - Subsec. (a)(16). Pub. L. 106-554 amended heading and text
of par. (16) generally. Prior to amendment, text read as follows:
"The deduction allowed by section 220."
1997 - Subsec. (a)(2)(C). Pub. L. 105-34, Sec. 975(a), added
subpar. (C).
Subsec. (a)(17). Pub. L. 105-34, Sec. 202(b), added par. (17).
1996 - Subsec. (a)(8). Pub. L. 104-188 struck out par. (8) which
read as follows: "Certain portion of lump-sum distributions from
pension plans taxed under section 402(d). - The deduction allowed
by section 402(d)(3)."
Subsec. (a)(16). Pub. L. 104-191 added par. (16).
1993 - Subsec. (a)(15). Pub. L. 103-66 added par. (15).
1992 - Subsec. (a)(8). Pub. L. 102-318 substituted "402(d)" for
"402(e)" in heading and in text.
Subsec. (a)(14). Pub. L. 102-486 added par. (14).
1990 - Subsec. (a)(13). Pub. L. 101-508, Sec. 11802(e)(1),
amended par. (13) generally. Prior to amendment, par. (13) read as
follows: "The deduction allowed by section 220."
1988 - Subsec. (a)(2)(A). Pub. L. 100-647, Sec. 1001(b)(3)(A),
inserted at end "The fact that the reimbursement may be provided by
a third party shall not be determinative of whether or not the
preceding sentence applies."
Subsec. (a)(13). Pub. L. 100-647, Sec. 6007(b), added par. (13).
Subsec. (c). Pub. L. 100-485 added subsec. (c).
1986 - Subsec. (a). Pub. L. 99-514, Sec. 132(b)(2)(A), designated
existing provisions as subsec. (a) and added heading.
Subsec. (a)(2). Pub. L. 99-514, Sec. 132(b)(1), amended par. (2)
generally, substituting "Certain trade" for "Trade" in heading and
inserting "of employees" in subpar. (A) heading, substituting
provision relating to deduction of certain expenses of performing
artists for provision relating to deduction of expenses for travel
away from home in subpar. (B), and striking out subpar. (C)
relating to deduction of travel expenses and subpar. (D) relating
to deduction of expenses of outside salesmen.
Subsec. (a)(3) to (5). Pub. L. 99-514, Sec. 301(b)(1),
redesignated pars. (4) to (6) as (3) to (5), respectively, and
struck out former par. (3) which related to long-term capital gains
and read as follows: "The deduction allowed by section 1202."
Subsec. (a)(6). Pub. L. 99-514, Sec. 301(b)(1), redesignated par.
(7) as (6). Former par. (6) redesignated (5).
Pub. L. 99-514, Sec. 1875(c)(3), struck out "to the extent
attributable to contributions made on behalf of such individual"
after "section 404".
Subsec. (a)(7). Pub. L. 99-514, Sec. 301(b)(1), redesignated par.
(10) as (7). Former par. (7) redesignated (6).
Subsec. (a)(8). Pub. L. 99-514, Sec. 301(b)(1), redesignated par.
(11) as (8). Former par. (8) struck out.
Pub. L. 99-514, Sec. 132(c), struck out par. (8) which related to
moving expense deduction and read as follows: "The deduction
allowed by section 217."
Subsec. (a)(9) to (15). Pub. L. 99-514, Sec. 301(b)(1),
redesignated pars. (12) to (15) as (9) to (12), respectively.
Former pars. (10) and (11) redesignated (7) and (8), respectively.
Subsec. (a)(16). Pub. L. 99-514, Sec. 131(b)(1), struck out par.
(16) which related to deduction for two-earner married couples and
read as follows: "The deduction allowed by section 221."
Subsec. (b). Pub. L. 99-514, Sec. 132(b)(2)(B), added subsec.
(b).
1984 - Par. (7). Pub. L. 98-369, Sec. 491(d)(2), substituted "and
annuity" for "annuity, and bond purchase" in heading, and
substituted "the deduction allowed by section 404" for "the
deductions allowed by section 404 and section 405(c)" in text.
1983 - Par. (9). Pub. L. 97-354 repealed par. (9) relating to the
deduction allowed by section 1379(b)(3).
1981 - Par. (10). Pub. L. 97-34, Sec. 311(h)(1), struck out "and
the deduction allowed by section 220 (relating to retirement
savings for certain married individuals)" after "retirement
savings".
Par. (14). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (15)
as (14). Former par. (14), relating to deduction for certain
expenses of living abroad, was struck out.
Par. (15). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (16)
as (15). Former par. (15) redesignated (14).
Par. (16). Pub. L. 97-34, Secs. 103(b), 112(b)(2), added par.
(16). Former par. (16) redesignated (15).
1980 - Par. (15). Pub. L. 96-451 added par. (15).
Par. (16). Pub. L. 96-608 added par. (16).
1978 - Par. (14). Pub. L. 95-615 added par. (14).
1976 - Par. (10). Pub. L. 94-455, Sec. 1501(b)(1), inserted
reference to the deduction allowed by section 220 (relating to
retirement savings for certain married individuals).
Pars. (11), (12). Pub. L. 94-455, Sec. 1901(a)(8), (9),
redesignated par. (11) relating to penalties forfeited because of
premature withdrawal of funds from time savings accounts or
deposits, as par. (12), and substituted "trade or business, to the
extent" for "trade or business to the extent".
Par. (13). Pub. L. 94-455, Sec. 502(a), added par. (13).
1974 - Par. (10). Pub. L. 93-406, Sec. 2002(a)(2), added par.
(10).
Par. (11). Pub. L. 93-483 added par. (11) relating to penalties
forfeited because of premature withdrawal of funds from time
savings accounts or deposits. Another par. (11) relating to certain
portions of lump-sum distributions from pension plans taxed under
section 402(e) of this title, was added by Pub. L. 93-406, Sec.
2005(c)(9).
1969 - Par. (9). Pub. L. 91-172 added par. (9).
1964 - Par. (8). Pub. L. 88-272 added par. (8).
1962 - Par. (7). Pub. L. 87-792 added par. (7).
EFFECTIVE DATE OF 2003 AMENDMENTS
Pub. L. 108-173, title XII, Sec. 1201(k), Dec. 8, 2003, 117 Stat.
2479, provided that: "The amendments made by this section [enacting
sections 223 and 4980G of this title, amending this section and
sections 106, 125, 220, 848, 3231, 3306, 3401, 4973, 4975, 6051,
and 6693 of this title, and renumbering former section 223 of this
title as 224] shall apply to taxable years beginning after December
31, 2003."
Pub. L. 108-121, title I, Sec. 109(c), Nov. 11, 2003, 117 Stat.
1342, provided that: "The amendments made by this section [amending
this section and section 162 of this title] shall apply to amounts
paid or incurred in taxable years beginning after December 31,
2002."
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 406(c), Mar. 9, 2002, 116 Stat.
44, provided that: "The amendments made by this section [amending
this section] shall apply to taxable years beginning after December
31, 2001."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title IV, Sec. 431(d), June 7, 2001, 115 Stat.
69, provided that: "The amendments made by this section [enacting
section 222 of this title, amending this section and sections 86,
135, 137, 219, 221, and 469 of this title, and renumbering former
section 222 of this title as 223] shall apply to payments made in
taxable years beginning after December 31, 2001."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 202(e) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting section 221 of this title, amending
this section and section 6050S of this title, and renumbering
former section 221 of this title as section 222 of this title]
shall apply to any qualified education loan (as defined in section
221(e)(1) of the Internal Revenue Code of 1986, as added by this
section) incurred on, before, or after the date of the enactment of
this Act [Aug. 5, 1997], but only with respect to -
"(1) any loan interest payment due and paid after December 31,
1997, and
"(2) the portion of the 60-month period referred to in section
221(d) of the Internal Revenue Code of 1986 (as added by this
section) after December 31, 1997."
Section 975(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall apply to
expenses paid or incurred in taxable years beginning after December
31, 1986."
EFFECTIVE DATE OF 1996 AMENDMENTS
Section 301(j) of Pub. L. 104-191 provided that: "The amendments
made by this section [enacting sections 220 and 4980E of this
title, amending this section and sections 106, 125, 848, 3231,
3306, 3401, 4973, 4975, 6051, and 6693 of this title, and
renumbering section 220 of this title as section 221] shall apply
to taxable years beginning after December 31, 1996."
Amendment by Pub. L. 104-188 applicable to taxable years
beginning after Dec. 31, 1999, with retention of certain transition
rules, see section 1401(c) of Pub. L. 104-188, set out as a note
under section 402 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13213(e) of Pub. L. 103-66 provided that: "The amendments
made by this section [amending this section and sections 67, 82,
132, 217, 1001, 1016, and 4977 of this title] shall apply to
expenses incurred after December 31, 1993; except that the
amendments made by subsection (d) [amending sections 82, 132, and
4977 of this title] shall apply to reimbursements or other payments
in respect of expenses incurred after such date."
EFFECTIVE DATE OF 1992 AMENDMENTS
Amendment by Pub. L. 102-486 applicable to property placed in
service after June 30, 1993, see section 1913(c) of Pub. L.
102-486, set out as an Effective Date note under section 30 of this
title.
Amendment by Pub. L. 102-318 applicable to distributions after
Dec. 31, 1992, see section 521(e) of Pub. L. 102-318, set out as a
note under section 402 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by section 1001(b)(3)(A) of Pub. L. 100-647 effective,
except as otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
Section 6007(d) of Pub. L. 100-647 provided that: "The amendments
made by this section [enacting section 220 of this title, amending
this section, and renumbering former section 220 of this title as
section 221 of this title] shall apply as if included in the
amendments made by section 132 of the Tax Reform Act of 1986 [Pub.
L. 99-514]."
Section 702(b) of Pub. L. 100-485 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1988."
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by sections 131(b)(1) and 132(b), (c) of Pub. L. 99-514
applicable to taxable years beginning after Dec. 31, 1986, see
section 151(a) of Pub. L. 99-514, set out as a note under section 1
of this title.
Section 301(c) of Pub. L. 99-514 provided that: "The amendments
made by this section [amending this section and sections 170, 172,
219, 220, 223, 642, 643, 691, 871, 1211, 1212, and 1402 of this
title and repealing section 1202 of this title] shall apply to
taxable years beginning after December 31, 1986."
Section 1875(c)(12) of Pub. L. 99-514 provided that: "The
amendments made by paragraphs (3), (4), and (6) [amending this
section and sections 219 and 408 of this title] shall take effect
as if included in the amendments made by section 238 of the Tax
Equity and Fiscal Responsibility Act of 1982 [section 238 of Pub.
L. 97-248, see section 241 of Pub. L. 97-248, set out as an
Effective Date note under section 416 of this title]."
EFFECTIVE DATE OF 1984 AMENDMENT
"Section 491(f)(1) of Pub. L. 98-369 provided that: "The
amendments and repeals made by subsections (a), (b), and (d)
[amending this section, sections 55, 72, 172, 219, 402, 403, 406,
407, 408, 412, 414, 415, 457, 2039, 2517, 3121, 3306, 3401, 4972,
4973, 4975, 6047, 6058, 6104, 6652, 7207, 7476, and 7701 of this
title, section 3107 of Title 31, Money and Finance, and section 409
of Title 42, The Public Health and Welfare, and repealing sections
405 and 409 of this title] shall apply to obligations issued after
December 31, 1983."
EFFECTIVE DATE OF 1983 AMENDMENT
Par. (9) as in effect before date of repeal by Pub. L. 97-354 to
remain in effect for years beginning before Jan. 1, 1984, see
section 6(b)(1) of Pub. L. 97-354, set out as an Effective Date
note under section 3761 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 103(d) of Pub. L. 97-34 provided that: "The amendments
made by this section [enacting section 219 of this title and
amending this section and sections 85 and 105 of this title] shall
apply to taxable years beginning after December 31, 1981."
Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97-34
applicable to taxable years beginning after Dec. 31, 1981, see
sections 115 and 311(i)(1) of Pub. L. 97-34, set out as notes under
sections 911 and 219, respectively, of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
Section 3(b) of Pub. L. 96-608 provided that: "The amendment made
by subsection (a) [amending this section] shall apply to repayments
made in taxable years beginning after the date of the enactment of
this Act [Dec. 28, 1980]."
Amendment by Pub. L. 96-451 applicable with respect to additions
to capital account made after Dec. 31, 1979, see section 301(d) of
Pub. L. 96-451, set out as an Effective Date note under section 194
of this title.
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION OF PRIOR LAW
Amendment by Pub. L. 95-615 applicable to taxable years beginning
after Dec. 31, 1977, with provision for election of prior law, see
section 209 of Pub. L. 95-615, set out as a note under section 911
of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 502(c) of Pub. L. 94-455 provided that: "The amendments
made by this section [amending this section and section 3402 of
this title] shall apply to taxable years beginning after December
31, 1976."
Section 1501(d) of Pub. L. 94-455 provided that: "The amendments
made by this section [enacting section 220 of this title, amending
this section and sections 219, 408, 409, 3401, 4973, and 6047 of
this title, and renumbering former section 220 as 221 of this
title], other than the amendment made by subsection (b)(3), shall
apply to taxable years beginning after December 31, 1976. The
amendment made by subsection (b)(3) [amending section 415 of this
title] shall apply to years beginning after December 31, 1976."
Amendment by section 1901(a)(8), (9) of Pub. L. 94-455 applicable
with respect to taxable years beginning after Dec. 31, 1976, see
section 1901(d) of Pub. L. 94-455, set out as a note under section
2 of this title.
EFFECTIVE DATE OF 1974 AMENDMENTS
Section 6(b) of Pub. L. 93-483 provided that: "The amendment made
by this section [amending this section] applies to taxable years
beginning after December 31, 1972."
Amendment by section 2002(a)(2) of Pub. L. 93-406 applicable to
taxable years beginning after Dec. 31, 1974, see section 2002(i)(1)
of Pub. L. 93-406, set out as an Effective Date note under section
219 of this title.
Amendment by section 2005(c)(9) of Pub. L. 93-406 applicable only
with respect to distributions or payments made after Dec. 31, 1973,
in taxable years beginning after Dec. 31, 1973, see section 2005(d)
of Pub. L. 93-406, set out as a note under section 402 of this
title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable with respect to taxable
years of electing small business corporations beginning after Dec.
31, 1970, see section 531(d) of Pub. L. 91-172, set out as an
Effective Date note under section 1379 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 213(d) of Pub. L. 88-272 provided that: "The amendments
made by subsections (a) [enacting section 217 and redesignating
former section 217 as 218] and (b) [amending this section] shall
apply to expenses incurred after December 31, 1963, in taxable
years ending after such date. The amendment made by subsection (c)
[amending section 3401 of this title] shall apply with respect to
remuneration paid after the seventh day following the date of the
enactment of this Act [Feb. 26, 1964]."
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-792 applicable to taxable years beginning
after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a
note under section 22 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998
For provisions directing that if any amendments made by subtitle
D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
amendment to any plan or annuity contract, such amendment shall not
be required to be made before the first day of the first plan year
beginning on or after Jan. 1, 1998, see section 1465 of Pub. L.
104-188, set out as a note under section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994
For provisions directing that if any amendments made by subtitle
B [Secs. 521-523] of title V of Pub. L. 102-318 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1994, see section 523 of Pub. L. 102-318, set out as a note under
section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
COMMUTING EXPENSES
Pub. L. 95-427, Sec. 2, Oct. 7, 1978, 92 Stat. 996, as amended by
Pub. L. 96-167, Sec. 2, Dec. 29, 1979, 93 Stat. 1275, provided that
with respect to transportation costs paid or incurred after
December 31, 1976, and on or before May 31, 1981, the application
of sections 62, 162, and 262 and of chapters 21, 23, and 24 of the
Internal Revenue Code of 1954 [now 1986] to transportation expenses
in traveling between a taxpayer's residence and place of work be
determined without regard to Revenue Ruling 76-453 or any other
regulation, ruling, or decision reaching the same or similar
result, and with full regard to the rules in effect before that
Revenue Ruling.
Pub. L. 95-615, Sec. 2, Nov. 8, 1978, 92 Stat. 3097, provided
that with respect to transportation costs paid or incurred after
Dec. 31, 1976, and before Apr. 30, 1978, the application of
sections 62, 162, and 262 and chapters 21, 23, and 24 of the
Internal Revenue Code of 1954 [now 1986] to transportation expenses
in traveling between a taxpayer's residence and place of work be
determined without regard to Revenue Ruling 76-453 or any other
regulation, ruling or decision reaching the same or similar result,
and with full regard to the rules in effect before that Revenue
Ruling, and ceased to have effect on the day after Nov. 8, 1978
pursuant to section 210(a) of that Act.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 162, 3402 of this title;
title 19 section 2401e; title 20 section 1087e; title 21 section
849; title 42 sections 1395r, 1396o.
-End-
-CITE-
26 USC Sec. 63 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 63. Taxable income defined
-STATUTE-
(a) In general
Except as provided in subsection (b), for purposes of this
subtitle, the term "taxable income" means gross income minus the
deductions allowed by this chapter (other than the standard
deduction).
(b) Individuals who do not itemize their deductions
In the case of an individual who does not elect to itemize his
deductions for the taxable year, for purposes of this subtitle, the
term "taxable income" means adjusted gross income, minus -
(1) the standard deduction, and
(2) the deduction for personal exemptions provided in section
151.
(c) Standard deduction
For purposes of this subtitle -
(1) In general
Except as otherwise provided in this subsection, the term
"standard deduction" means the sum of -
(A) the basic standard deduction, and
(B) the additional standard deduction.
(2) Basic standard deduction
For purposes of paragraph (1), the basic standard deduction is
-
(A) the applicable percentage of the dollar amount in effect
under subparagraph (D) for the taxable year in the case of -
(i) a joint return, or
(ii) a surviving spouse (as defined in section 2(a)),
(B) $4,400 in the case of a head of household (as defined in
section 2(b)),
(C) one-half of the amount in effect under subparagraph (A)
in the case of a married individual filing a separate return,
or
(D) $3,000 in any other case.
If any amount determined under subparagraph (A) is not a multiple
of $50, such amount shall be rounded to the next lowest multiple
of $50.
(3) Additional standard deduction for aged and blind
For purposes of paragraph (1), the additional standard
deduction is the sum of each additional amount to which the
taxpayer is entitled under subsection (f).
(4) Adjustments for inflation
In the case of any taxable year beginning in a calendar year
after 1988, each dollar amount contained in paragraph (2)(B),
(2)(D), or (5) or subsection (f) shall be increased by an amount
equal to -
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year begins,
by substituting for "calendar year 1992" in subparagraph (B)
thereof -
(i) "calendar year 1987" in the case of the dollar amounts
contained in paragraph (2)(B), (2)(D), or (5)(A) or
subsection (f), and
(ii) "calendar year 1997" in the case of the dollar amount
contained in paragraph (5)(B).
(5) Limitation on basic standard deduction in the case of certain
dependents
In the case of an individual with respect to whom a deduction
under section 151 is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins, the basic standard deduction applicable to
such individual for such individual's taxable year shall not
exceed the greater of -
(A) $500, or
(B) the sum of $250 and such individual's earned income.
(6) Certain individuals, etc., not eligible for standard
deduction
In the case of -
(A) a married individual filing a separate return where
either spouse itemizes deductions,
(B) a nonresident alien individual,
(C) an individual making a return under section 443(a)(1) for
a period of less than 12 months on account of a change in his
annual accounting period, or
(D) an estate or trust, common trust fund, or partnership,
the standard deduction shall be zero.
(7) Applicable percentage
For purposes of paragraph (2), the applicable percentage shall
be determined in accordance with the following table:
For taxable years beginning The applicable
in calendar year - percentage is -
2003 and 2004 200
2005 174
2006 184
2007 187
2008 190
2009 and thereafter 200.
(d) Itemized deductions
For purposes of this subtitle, the term "itemized deductions"
means the deductions allowable under this chapter other than -
(1) the deductions allowable in arriving at adjusted gross
income, and
(2) the deduction for personal exemptions provided by section
151.
(e) Election to itemize
(1) In general
Unless an individual makes an election under this subsection
for the taxable year, no itemized deduction shall be allowed for
the taxable year. For purposes of this subtitle, the
determination of whether a deduction is allowable under this
chapter shall be made without regard to the preceding sentence.
(2) Time and manner of election
Any election under this subsection shall be made on the
taxpayer's return, and the Secretary shall prescribe the manner
of signifying such election on the return.
(3) Change of election
Under regulations prescribed by the Secretary, a change of
election with respect to itemized deductions for any taxable year
may be made after the filing of the return for such year. If the
spouse of the taxpayer filed a separate return for any taxable
year corresponding to the taxable year of the taxpayer, the
change shall not be allowed unless, in accordance with such
regulations -
(A) the spouse makes a change of election with respect to
itemized deductions, for the taxable year covered in such
separate return, consistent with the change of treatment sought
by the taxpayer, and
(B) the taxpayer and his spouse consent in writing to the
assessment (within such period as may be agreed on with the
Secretary) of any deficiency, to the extent attributable to
such change of election, even though at the time of the filing
of such consent the assessment of such deficiency would
otherwise be prevented by the operation of any law or rule of
law.
This paragraph shall not apply if the tax liability of the
taxpayer's spouse for the taxable year corresponding to the
taxable year of the taxpayer has been compromised under section
7122.
(f) Aged or blind additional amounts
(1) Additional amounts for the aged
The taxpayer shall be entitled to an additional amount of $600
-
(A) for himself if he has attained age 65 before the close of
his taxable year, and
(B) for the spouse of the taxpayer if the spouse has attained
age 65 before the close of the taxable year and an additional
exemption is allowable to the taxpayer for such spouse under
section 151(b).
(2) Additional amount for blind
The taxpayer shall be entitled to an additional amount of $600
-
(A) for himself if he is blind at the close of the taxable
year, and
(B) for the spouse of the taxpayer if the spouse is blind as
of the close of the taxable year and an additional exemption is
allowable to the taxpayer for such spouse under section 151(b).
For purposes of subparagraph (B), if the spouse dies during the
taxable year the determination of whether such spouse is blind
shall be made as of the time of such death.
(3) Higher amount for certain unmarried individuals
In the case of an individual who is not married and is not a
surviving spouse, paragraphs (1) and (2) shall be applied by
substituting "$750" for "$600".
(4) Blindness defined
For purposes of this subsection, an individual is blind only if
his central visual acuity does not exceed 20/200 in the better
eye with correcting lenses, or if his visual acuity is greater
than 20/200 but is accompanied by a limitation in the fields of
vision such that the widest diameter of the visual field subtends
an angle no greater than 20 degrees.
(g) Marital status
For purposes of this section, marital status shall be determined
under section 7703.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 18; Pub. L. 95-30, title I, Sec.
102(a), May 23, 1977, 91 Stat. 135; Pub. L. 95-600, title I, Sec.
101(b), Nov. 6, 1978, 92 Stat. 2769; Pub. L. 97-34, title I, Secs.
104(b), 111(b)(4), 121(b), (c)(2), Aug. 13, 1981, 95 Stat. 189,
194, 196, 197; Pub. L. 99-514, title I, Sec. 102(a), title XII,
Sec. 1272(d)(6), Oct. 22, 1986, 100 Stat. 2099, 2594; Pub. L.
100-647, title I, Sec. 1001(b)(1), Nov. 10, 1988, 102 Stat. 3349;
Pub. L. 101-508, title XI, Secs. 11101(d)(1)(D), 11801(a)(4), Nov.
5, 1990, 104 Stat. 1388-405, 1388-520; Pub. L. 103-66, title XIII,
Sec. 13201(b)(3)(D), Aug. 10, 1993, 107 Stat. 459; Pub. L. 105-34,
title XII, Sec. 1201(a), Aug. 5, 1997, 111 Stat. 993; Pub. L.
107-16, title III, Sec. 301(a), (b), (c)(2), June 7, 2001, 115
Stat. 53, 54; Pub. L. 107-147, title IV, Sec. 411(e), Mar. 9, 2002,
116 Stat. 46; Pub. L. 108-27, title I, Sec. 103(a), May 28, 2003,
117 Stat. 754.)
-STATAMEND-
STANDARD DEDUCTION ADJUSTMENTS FOR TAXABLE YEARS BEGINNING IN 2004
For adjustment of standard deduction, limitation on standard
deduction, and additional amounts under subsections (c)(2), (5) and
(f) of this section for taxable years beginning in 2004, see
section 3.10 of Revenue Procedure 2003-85, set out as a note under
section 1 of this title.
AMENDMENT OF SECTION
For termination of amendment by section 107 of Pub. L. 108-27,
see Effective and Termination Dates of 2003 Amendment note below.
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2003 - Subsec. (c)(7). Pub. L. 108-27, Secs. 103(a), 107,
temporarily inserted table item relating to years 2003 and 2004.
See Effective and Termination Dates of 2003 Amendment note below.
2002 - Subsec. (c)(2). Pub. L. 107-147, Sec. 411(e)(1)(E),
inserted "If any amount determined under subparagraph (A) is not a
multiple of $50, such amount shall be rounded to the next lowest
multiple of $50." at end.
Subsec. (c)(2)(A). Pub. L. 107-147, Sec. 411(e)(1)(A),
substituted "subparagraph (D)" for "subparagraph (C)".
Subsec. (c)(2)(B). Pub. L. 107-147, Sec. 411(e)(1)(B), struck out
"or" at end.
Subsec. (c)(2)(C), (D). Pub. L. 107-147, Sec. 411(e)(1)(C), (D),
added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (c)(4). Pub. L. 107-147, Sec. 411(e)(2)(C), which
directed amendment by striking out the flush sentence at the end
added by section 301(c)(2) of Public Law 107-17, was executed by
striking out "The preceding sentence shall not apply to the amount
referred to in paragraph (2)(A).", which was inserted by section
301(c)(2) of Pub. L. 107-16, to reflect the probable intent of
Congress. See 2001 Amendment note below.
Pub. L. 107-147, Sec. 411(e)(2)(A), substituted "paragraph
(2)(B), (2)(D), or (5)" for "paragraph (2) or (5)" in introductory
provisions.
Subsec. (c)(4)(B)(i). Pub. L. 107-147, Sec. 411(e)(2)(B),
substituted "paragraph (2)(B), (2)(D)," for "paragraph (2)".
2001 - Subsec. (c)(2)(A). Pub. L. 107-16, Secs. 301(a)(1), 901,
temporarily substituted "the applicable percentage of the dollar
amount in effect under subparagraph (C) for the taxable year" for
"$5,000". See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (c)(2)(B). Pub. L. 107-16, Secs. 301(a)(2), 901,
temporarily inserted "or" at end. See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (c)(2)(C). Pub. L. 107-16, Secs. 301(a)(3), 901,
temporarily substituted "in any other case." for "in the case of an
individual who is not married and who is not a surviving spouse or
head of household, or". See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(2)(D). Pub. L. 107-16, Secs. 301(a)(4), 901,
temporarily struck out subpar. (D) which read as follows: "$2,500
in the case of a married individual filing a separate return." See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (c)(4). Pub. L. 107-16, Secs. 301(c)(2), 901, temporarily
inserted at end "The preceding sentence shall not apply to the
amount referred to in paragraph (2)(A)." See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (c)(7). Pub. L. 107-16, Secs. 301(b), 901, temporarily
added par. (7). See Effective and Termination Dates of 2001
Amendment note below.
1997 - Subsec. (c)(4). Pub. L. 105-34, Sec. 1201(a)(2), in
introductory provisions, substituted "(5)" for "(5)(A)" and, in
subpar. (B), substituted "by substituting for 'calendar year 1992'
in subparagraph (B) thereof - " for "by substituting 'calendar year
1987' for 'calendar year 1992' in subparagraph (B) thereof" and
added cls. (i) and (ii).
Subsec. (c)(5)(B). Pub. L. 105-34, Sec. 1201(a)(1), substituted
"the sum of $250 and such individual's earned income" for "such
individual's earned income".
1993 - Subsec. (c)(4)(B). Pub. L. 103-66 substituted "1992" for
"1989".
1990 - Subsec. (c)(4)(B). Pub. L. 101-508, Sec. 11101(d)(1)(D),
inserted before period at end ", by substituting 'calendar year
1987' for 'calendar year 1989' in subparagraph (B) thereof".
Subsec. (h). Pub. L. 101-508, Sec. 11801(a)(4), struck out
subsec. (h) "Transitional rule for taxable years beginning in 1987"
which read as follows: "In the case of any taxable year beginning
in 1987, paragraph (2) of subsection (c) shall be applied -
"(1) by substituting '$3,760' for '$5,000',
"(2) by substituting '$2,540' for '$4,400',
"(3) by substituting '$2,540' for '$3,000', and
"(4) by substituting '$1,880' for '$2,500'.
The preceding sentence shall not apply if the taxpayer is entitled
to an additional amount determined under subsection (f) (relating
to additional amount for aged and blind) for the taxable year."
1988 - Subsec. (c)(5). Pub. L. 100-647 substituted "basic
standard deduction" for "standard deduction" in heading and text.
1986 - Subsec. (a). Pub. L. 99-514, Sec. 102(a), substituted "In
general" for "Corporations" in heading and amended text generally.
Prior to amendment, text read as follows: "For purposes of this
subtitle, in the case of a corporation, the term 'taxable income'
means gross income minus the deductions allowed by this chapter."
Subsec. (b). Pub. L. 99-514, Sec. 102(a), substituted
"Individuals who do not itemize their deductions" for "Individuals"
in heading and amended text generally. Prior to amendment, text
read as follows: "For purposes of this subtitle, in the case of an
individual, the term 'taxable income' means adjusted gross income -
"(1) reduced by the sum of -
"(A) the excess itemized deductions,
"(B) the deductions for personal exemptions provided by
section 151, and
"(C) the direct charitable deduction, and
"(2) increased (in the case of an individual for whom an unused
zero bracket amount computation is provided by subsection (e)) by
the unused zero bracket amount (if any)."
Subsec. (c). Pub. L. 99-514, Sec. 102(a), substituted "Standard
deduction" for "Excess itemized deductions" in heading and amended
text generally. Prior to amendment, text read as follows: "For
purposes of this subtitle, the term 'excess itemized deductions'
means the excess (if any) of -
"(1) the itemized deductions, over
"(2) the zero bracket amount."
Subsec. (c)(6)(C) to (E). Pub. L. 99-514, Sec. 1272(d)(6),
redesignated subpars. (D) and (E) as (C) and (D), respectively, and
struck out former subpar. (C) which read as follows: "a citizen of
the United States entitled to the benefits of section 931 (relating
to income from sources within possessions of the United States),".
Subsec. (d). Pub. L. 99-514, Sec. 102(a), substituted "Itemized
deductions" for "Zero bracket amount" in heading and amended text
generally. Prior to amendment, subsec. (d) read as follows: "For
purposes of this subtitle, the term 'zero bracket amount' means -
"(1) in the case of an individual to whom subsection (a), (b),
(c), or (d) of section 1 applies, the maximum amount of taxable
income on which no tax is imposed by the applicable subsection of
section 1, or
"(2) zero in any other case."
Subsec. (e). Pub. L. 99-514, Sec. 102(a), substituted "Election
to itemize" for "Unused zero bracket amount" in heading.
Subsec. (e)(1). Pub. L. 99-514, Sec. 102(a), substituted "In
general" for "Individuals for whom computation must be made" in
heading and amended text generally. Prior to amendment, text read
as follows: "A computation for the taxable year shall be made under
this subsection for the following individuals:
"(A) a married individual filing a separate return where either
spouse itemized deductions,
"(B) a nonresident alien individual,
"(C) a citizen of the United States entitled to the benefits of
section 931 (relating to income from sources within possessions
of the United States), and
"(D) an individual with respect to whom a deduction under
section 151(e) is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's
taxable year begins."
Subsec. (e)(2). Pub. L. 99-514, Sec. 102(a), substituted "Time
and manner of election" for "Computation" in heading and amended
text generally. Prior to amendment, text read as follows: "For
purposes of this subtitle, an individual's unused zero bracket
amount for the taxable year is an amount equal to the excess (if
any) of -
"(A) the zero bracket amount, over
"(B) the itemized deductions.
In the case of an individual referred to in paragraph (1)(D), if
such individual's earned income (as defined in section 911(d)(2))
exceeds the itemized deductions, such earned income shall be
substituted for the itemized deductions in subparagraph (B)."
Subsec. (e)(3). Pub. L. 99-514, Sec. 102(a), in amending subsec.
(e) generally, added par. (3).
Subsec. (f). Pub. L. 99-514, Sec. 102(a), substituted "Aged or
blind additional amounts" for "Itemized deductions" in heading and
amended text generally. Prior to amendment, text read as follows:
"For purposes of this subtitle, the term 'itemized deductions'
means the deductions allowable by this chapter other than -
"(1) the deductions allowable in arriving at adjusted gross
income,
"(2) the deductions for personal exemptions provided by section
151, and
"(3) the direct charitable deduction."
Subsec. (g). Pub. L. 99-514, Sec. 102(a), amended subsec. (g)
generally, substituting provision that marital status be determined
under section 7703 for provisions relating to election to itemize.
See subsec. (e).
Subsec. (h). Pub. L. 99-514, Sec. 102(a), substituted
"Transitional rule for taxable years beginning in 1987" for
"Marital status" in heading and amended text generally. Prior to
amendment, text read as follows: "For purposes of this section,
marital status shall be determined under section 143."
Subsec. (i). Pub. L. 99-514, Sec. 102(a), in amending section
generally, struck out subsec. (i), "Direct charitable deduction",
which read as follows: "For purposes of this section, the term
'direct charitable deduction' means that portion of the amount
allowable under section 170(a) which is taken as a direct
charitable deduction for the taxable year under section 170(i)."
1981 - Subsec. (b)(1)(C). Pub. L. 97-34, Sec. 121(b)(1), added
subpar. (C).
Subsec. (d). Pub. L. 97-34, Sec. 104(b), substituted a blanket
reference to individuals to whom subsection (a), (b), (c), or (d)
of section 1 applies and the maximum amount of taxable income on
which no tax is imposed by the applicable subsection of section 1
for provisions specifically referring to amounts of $3,400 in the
case of (A) a joint return under section 6013, or (B) a surviving
spouse (as defined in section 2(a)), $2,300 in the case of an
individual who is not married and who is not a surviving spouse (as
so defined), and $1,700 in the case of a married individual filing
a separate return.
Subsec. (e)(2). Pub. L. 97-34, Sec. 111(b)(4), substituted
"section 911(d)(2)" for "section 911(b)" in provisions following
subpar. (B).
Subsec. (f)(3). Pub. L. 97-34, Sec. 121(c)(2), added par. (3).
Subsec. (i). Pub. L. 97-34, Sec. 121(b)(2), added subsec. (i).
1978 - Pub. L. 95-600 substituted "$3,400" for "$3,200" in par.
(1), "$2,300" for "$2,200" in par. (2), and "$1,700" for "$1,600"
in par. (3).
1977 - Pub. L. 95-30 completely revised definition of taxable
income from one using the concept of a standard deduction and
consisting of subsecs. (a) and (b) entitled, respectively, "General
rule" and "Individuals electing standard deduction" to definition
using the concepts of zero bracket amounts and excess itemized
deductions and consisting of subsecs. (a) to (h) entitled,
respectively, "Corporations", "Individuals", "Excess itemized
deductions", "Zero bracket amount", "Unused zero bracket amount",
"Itemized deductions", "Election to itemize", and "Marital status".
EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT
Pub. L. 108-27, title I, Sec. 103(c), May 28, 2003, 117 Stat.
754, provided that: "The amendments made by this section [amending
this section and provisions set out as an Effective and Termination
Dates of 2001 Amendment note under section 1 of this title] shall
apply to taxable years beginning after December 31, 2002."
Amendments by title I of Pub. L. 108-27 subject to title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub.
L. 107-16, Sec. 901, to the same extent and in the same manner as
the provisions of such Act to which such amendments relate, see
section 107 of Pub. L. 108-27, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 effective as if included in the
provisions of the Economic Growth and Tax Relief Reconciliation Act
of 2001, Pub. L. 107-16, to which such amendment relates, see
section 411(x) of Pub. L. 107-147, set out as a note under section
25B of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to taxable years beginning
after Dec. 31, 2002, see section 301(d) of Pub. L. 107-16, as
amended, set out as a note under section 1 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to taxable years beginning
after Dec. 31, 1997, see section 1201(c) of Pub. L. 105-34, set out
as a note under section 59 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to taxable years beginning
after Dec. 31, 1992, see section 13201(c) of Pub. L. 103-66, set
out as a note under section 1 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11101(d)(1)(D) of Pub. L. 101-508 applicable
to taxable years beginning after Dec. 31, 1990, see section
11101(e) of Pub. L. 101-508, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 102(a) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 151(a) of
Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1272(d)(6) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 1277 of Pub. L. 99-514,
set out as a note under section 931 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 104(b) of Pub. L. 97-34 applicable to
taxable years beginning after Dec. 31, 1984, see section 104(e) of
Pub. L. 97-34, set out as a note under section 1 of this title.
Amendment by section 111(b)(4) of Pub. L. 97-34 applicable with
respect to taxable years beginning after Dec. 31, 1981, see section
115 of Pub. L. 97-34, set out as a note under section 911 of this
title.
Amendment by section 121(b), (c)(2) of Pub. L. 97-34 applicable
to contributions made after Dec. 31, 1981, in taxable years
beginning after such date, see section 121(d) of Pub. L. 97-34, set
out as a note under section 170 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 effective with respect to taxable
years beginning after Dec. 31, 1978, see section 101(f)(1) of Pub.
L. 95-600, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by section 11801 of Pub.
L. 101-508 be construed to affect treatment of certain transactions
occurring, property acquired, or items of income, loss, deduction,
or credit taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1, 2, 3, 56, 161, 211,
1034, 1375, 3402, 6012, 6013, 6014, 6212, 6504 of this title.
-End-
-CITE-
26 USC Sec. 64 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 64. Ordinary income defined
-STATUTE-
For purposes of this subtitle, the term "ordinary income"
includes any gain from the sale or exchange of property which is
neither a capital asset nor property described in section 1231(b).
Any gain from the sale or exchange of property which is treated or
considered, under other provisions of this subtitle, as "ordinary
income" shall be treated as gain from the sale or exchange of
property which is neither a capital asset nor property described in
section 1231(b).
-SOURCE-
(Added Pub. L. 94-455, title XIX, Sec. 1901(a)(10), Oct. 4, 1976,
90 Stat. 1765.)
-End-
-CITE-
26 USC Sec. 65 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 65. Ordinary loss defined
-STATUTE-
For purposes of this subtitle, the term "ordinary loss" includes
any loss from the sale or exchange of property which is not a
capital asset. Any loss from the sale or exchange of property which
is treated or considered, under other provisions of this subtitle,
as "ordinary loss" shall be treated as loss from the sale or
exchange of property which is not a capital asset.
-SOURCE-
(Added Pub. L. 94-455, title XIX, Sec. 1901(a)(11), Oct. 4, 1976,
90 Stat. 1765.)
-End-
-CITE-
26 USC Sec. 66 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 66. Treatment of community income
-STATUTE-
(a) Treatment of community income where spouses live apart
If -
(1) 2 individuals are married to each other at any time during
a calendar year;
(2) such individuals -
(A) live apart at all times during the calendar year, and
(B) do not file a joint return under section 6013 with each
other for a taxable year beginning or ending in the calendar
year;
(3) one or both of such individuals have earned income for the
calendar year which is community income; and
(4) no portion of such earned income is transferred (directly
or indirectly) between such individuals before the close of the
calendar year,
then, for purposes of this title, any community income of such
individuals for the calendar year shall be treated in accordance
with the rules provided by section 879(a).
(b) Secretary may disregard community property laws where spouse
not notified of community income
The Secretary may disallow the benefits of any community property
law to any taxpayer with respect to any income if such taxpayer
acted as if solely entitled to such income and failed to notify the
taxpayer's spouse before the due date (including extensions) for
filing the return for the taxable year in which the income was
derived of the nature and amount of such income.
(c) Spouse relieved of liability in certain other cases
Under regulations prescribed by the Secretary, if -
(1) an individual does not file a joint return for any taxable
year,
(2) such individual does not include in gross income for such
taxable year an item of community income properly includible
therein which, in accordance with the rules contained in section
879(a), would be treated as the income of the other spouse,
(3) the individual establishes that he or she did not know of,
and had no reason to know of, such item of community income, and
(4) taking into account all facts and circumstances, it is
inequitable to include such item of community income in such
individual's gross income,
then, for purposes of this title, such item of community income
shall be included in the gross income of the other spouse (and not
in the gross income of the individual). Under procedures prescribed
by the Secretary, if, taking into account all the facts and
circumstances, it is inequitable to hold the individual liable for
any unpaid tax or any deficiency (or any portion of either)
attributable to any item for which relief is not available under
the preceding sentence, the Secretary may relieve such individual
of such liability.
(d) Definitions
For purposes of this section -
(1) Earned income
The term "earned income" has the meaning given to such term by
section 911(d)(2).
(2) Community income
The term "community income" means income which, under
applicable community property laws, is treated as community
income.
(3) Community property laws
The term "community property laws" means the community property
laws of a State, a foreign country, or a possession of the United
States.
-SOURCE-
(Added Pub. L. 96-605, title I, Sec. 101(a), Dec. 28, 1980, 94
Stat. 3521; amended Pub. L. 98-369, div. A, title IV, Sec.
424(b)(1)-(2)(B), July 18, 1984, 98 Stat. 802, 803; Pub. L.
101-239, title VII, Sec. 7841(d)(8), Dec. 19, 1989, 103 Stat. 2428;
Pub. L. 105-206, title III, Sec. 3201(b), July 22, 1998, 112 Stat.
739.)
-MISC1-
AMENDMENTS
1998 - Subsec. (c). Pub. L. 105-206 inserted at end "Under
procedures prescribed by the Secretary, if, taking into account all
the facts and circumstances, it is inequitable to hold the
individual liable for any unpaid tax or any deficiency (or any
portion of either) attributable to any item for which relief is not
available under the preceding sentence, the Secretary may relieve
such individual of such liability."
1989 - Subsec. (d)(1). Pub. L. 101-239 substituted "section
911(d)(2)" for "section 911(b)".
1984 - Pub. L. 98-369, Sec. 424(b)(2)(A), struck out "where
spouses live apart" in section catchline.
Subsec. (a). Pub. L. 98-369, Sec. 424(b)(2)(B), substituted
"Treatment of community income where spouses live apart" for
"General rule" in heading.
Subsecs. (b) to (d). Pub. L. 98-369, Sec. 424(b)(1), added
subsecs. (b) and (c) and redesignated former subsec. (b) as (d).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 applicable to any liability for tax
arising after July 22, 1998, and any liability for tax arising on
or before such date but remaining unpaid as of such date, see
section 3201(g)(1) of Pub. L. 105-206, set out as a note under
section 6015 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to all taxable years to
which the Internal Revenue Code of 1986 [formerly I.R.C. 1954]
applies with corresponding provisions deemed to be included in the
Internal Revenue Code of 1939 and applicable to all taxable years
to which such Code applies, except subsection (b) of this section
is applicable to taxable years beginning after December 31, 1984,
see section 424(c) of Pub. L. 98-369, set out as a note under
section 6013 of this title.
EFFECTIVE DATE
Section 101(c) of Pub. L. 96-605 provided that: "The amendments
made by this section [enacting this section] shall apply to
calendar years beginning after December 31, 1980."
-End-
-CITE-
26 USC Sec. 67 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 67. 2-percent floor on miscellaneous itemized deductions
-STATUTE-
(a) General rule
In the case of an individual, the miscellaneous itemized
deductions for any taxable year shall be allowed only to the extent
that the aggregate of such deductions exceeds 2 percent of adjusted
gross income.
(b) Miscellaneous itemized deductions
For purposes of this section, the term "miscellaneous itemized
deductions" means the itemized deductions other than -
(1) the deduction under section 163 (relating to interest),
(2) the deduction under section 164 (relating to taxes),
(3) the deduction under section 165(a) for casualty or theft
losses described in paragraph (2) or (3) of section 165(c) or for
losses described in section 165(d),
(4) the deductions under section 170 (relating to charitable,
etc., contributions and gifts) and section 642(c) (relating to
deduction for amounts paid or permanently set aside for a
charitable purpose),
(5) the deduction under section 213 (relating to medical,
dental, etc., expenses),
(6) any deduction allowable for impairment-related work
expenses,
(7) the deduction under section 691(c) (relating to deduction
for estate tax in case of income in respect of the decedent),
(8) any deduction allowable in connection with personal
property used in a short sale,
(9) the deduction under section 1341 (relating to computation
of tax where taxpayer restores substantial amount held under
claim of right),
(10) the deduction under section 72(b)(3) (relating to
deduction where annuity payments cease before investment
recovered),
(11) the deduction under section 171 (relating to deduction for
amortizable bond premium), and
(12) the deduction under section 216 (relating to deductions in
connection with cooperative housing corporations).
(c) Disallowance of indirect deduction through pass-thru entity
(1) In general
The Secretary shall prescribe regulations which prohibit the
indirect deduction through pass-thru entities of amounts which
are not allowable as a deduction if paid or incurred directly by
an individual and which contain such reporting requirements as
may be necessary to carry out the purposes of this subsection.
(2) Treatment of publicly offered regulated investment companies
(A) In general
Paragraph (1) shall not apply with respect to any publicly
offered regulated investment company.
(B) Publicly offered regulated investment companies
For purposes of this subsection -
(i) In general
The term "publicly offered regulated investment company"
means a regulated investment company the shares of which are
-
(I) continuously offered pursuant to a public offering
(within the meaning of section 4 of the Securities Act of
1933, as amended (15 U.S.C. 77a to 77aa)),
(II) regularly traded on an established securities
market, or
(III) held by or for no fewer than 500 persons at all
times during the taxable year.
(ii) Secretary may reduce 500 person requirement
The Secretary may by regulation decrease the minimum
shareholder requirement of clause (i)(III) in the case of
regulated investment companies which experience a loss of
shareholders through net redemptions of their shares.
(3) Treatment of certain other entities
Paragraph (1) shall not apply -
(A) with respect to cooperatives and real estate investment
trusts, and
(B) except as provided in regulations, with respect to
estates and trusts.
(d) Impairment-related work expenses
For purposes of this section, the term "impairment-related work
expenses" means expenses -
(1) of a handicapped individual (as defined in section
190(b)(3)) for attendant care services at the individual's place
of employment and other expenses in connection with such place of
employment which are necessary for such individual to be able to
work, and
(2) with respect to which a deduction is allowable under
section 162 (determined without regard to this section).
(e) Determination of adjusted gross income in case of estates and
trusts
For purposes of this section, the adjusted gross income of an
estate or trust shall be computed in the same manner as in the case
of an individual, except that -
(1) the deductions for costs which are paid or incurred in
connection with the administration of the estate or trust and
which would not have been incurred if the property were not held
in such trust or estate, and
(2) the deductions allowable under sections 642(b), 651, and
661,
shall be treated as allowable in arriving at adjusted gross income.
Under regulations, appropriate adjustments shall be made in the
application of part I of subchapter J of this chapter to take into
account the provisions of this section.
(f) Coordination with other limitation
This section shall be applied before the application of the
dollar limitation of the second sentence of section 162(a)
(relating to trade or business expenses).
-SOURCE-
(Added Pub. L. 99-514, title I, Sec. 132(a), Oct. 22, 1986, 100
Stat. 2113; amended Pub. L. 100-647, title I, Sec. 1001(f), title
IV, Sec. 4011(a), Nov. 10, 1988, 102 Stat. 3351, 3655; Pub. L.
101-239, title VII, Sec. 7814(f), Dec. 19, 1989, 103 Stat. 2414;
Pub. L. 103-66, title XIII, Sec. 13213(c)(2), Aug. 10, 1993, 107
Stat. 474; Pub. L. 105-277, div. J, title IV, Sec. 4004(b)(1), Oct.
21, 1998, 112 Stat. 2681-910; Pub. L. 106-554, Sec. 1(a)(7) [title
III, Sec. 319(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A-646.)
-REFTEXT-
REFERENCES IN TEXT
Section 4 of the Securities Act of 1933, referred to in subsec.
(c)(2)(B)(i)(I), is classified to section 77d of Title 15, Commerce
and Trade.
-MISC1-
AMENDMENTS
2000 - Subsec. (f). Pub. L. 106-554 substituted "the second
sentence" for "the last sentence".
1998 - Subsec. (b)(3). Pub. L. 105-277 substituted "for casualty
or theft losses described in paragraph (2) or (3) of section 165(c)
or for losses described in section 165(d)" for "for losses
described in subsection (c)(3) or (d) of section 165".
1993 - Subsec. (b)(6) to (13). Pub. L. 103-66 redesignated pars.
(7) to (13) as (6) to (12), respectively, and struck out former
par. (6) which read as follows: "the deduction under section 217
(relating to moving expenses),".
1989 - Subsec. (c)(4). Pub. L. 101-239 struck out par. (4) which
read as follows: "Termination. - This subsection shall not apply to
any taxable year beginning after December 31, 1989."
1988 - Subsec. (b)(4). Pub. L. 100-647, Sec. 1001(f)(2),
substituted "deductions" for "deduction" and inserted before comma
at end "and section 642(c) (relating to deduction for amounts paid
or permanently set aside for a charitable purpose)".
Subsec. (c). Pub. L. 100-647, Sec. 4011(a), amended subsec. (c)
generally. Prior to amendment subsec. (c) read as follows: "The
Secretary shall prescribe regulations which prohibit the indirect
deduction through pass-thru entities of amounts which are not
allowable as a deduction if paid or incurred directly by an
individual and which contain such reporting requirements as may be
necessary to carry out the purposes of this subsection. The
preceding sentence shall not apply -
"(1) with respect to cooperatives and real estate investment
trusts, and
"(2) except as provided in regulations, with respect to estates
and trusts."
Pub. L. 100-647, Sec. 1001(f)(4), amended last sentence
generally. Prior to amendment, last sentence read as follows: "The
preceding sentence shall not apply with respect to estates, trusts,
cooperatives, and real estate investment trusts."
Subsec. (e). Pub. L. 100-647, Sec. 1001(f)(3), amended subsec.
(e) generally. Prior to amendment, subsec. (e) read as follows:
"For purposes of this section, the adjusted gross income of an
estate or trust shall be computed in the same manner as in the case
of an individual, except that the deductions for costs which are
paid or incurred in connection with the administration of the
estate or trust and would not have been incurred if the property
were not held in such trust or estate shall be treated as allowable
in arriving at adjusted gross income."
Subsec. (f). Pub. L. 100-647, Sec. 1001(f)(1), added subsec. (f).
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-277, div. J, title IV, Sec. 4004(c)(2), Oct. 21,
1998, 112 Stat. 2681-911, provided that: "The amendment made by
subsection (b)(1) [amending this section] shall apply to taxable
years beginning after December 31, 1986."
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to expenses incurred after
Dec. 31, 1993, see section 13213(e) of Pub. L. 103-66 set out as a
note under section 62 of this title.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective, except as otherwise
provided, as if included in the provision of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
amendment relates, see section 7817 of Pub. L. 101-239, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1001(f) of Pub. L. 100-647 effective, except
as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
Section 4011(b) of Pub. L. 100-647 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1987."
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31,
1986, see section 151(a) of Pub. L. 99-514, set out as an Effective
Date of 1986 Amendment note under section 1 of this title.
1-YEAR DELAY IN TREATMENT OF PUBLICLY OFFERED REGULATED INVESTMENT
COMPANIES UNDER 2-PERCENT FLOOR
Pub. L. 100-203, title X, Sec. 10104(a), Dec. 22, 1987, 101 Stat.
1330-386, provided that:
"(1) General rule. - Section 67(c) of the Internal Revenue Code
of 1986 to the extent it relates to indirect deductions through a
publicly offered regulated investment company shall apply only to
taxable years beginning after December 31, 1987.
"(2) Publicly offered regulated investment company defined. - For
purposes of this subsection -
"(A) In general. - The term 'publicly offered regulated
investment company' means a regulated investment company the
shares of which are -
"(i) continuously offered pursuant to a public offering
(within the meaning of section 4 of the Securities Act of 1933,
as amended (15 U.S.C. 77a to 77aa) [15 U.S.C. 77d]),
"(ii) regularly traded on an established securities market,
or
"(iii) held by or for no fewer than 500 persons at all times
during the taxable year.
"(B) Secretary may reduce 500 person requirement. - The
Secretary of the Treasury or his delegate may by regulation
decrease the minimum shareholder requirement of subparagraph
(A)(iii) in the case of regulated investment companies which
experience a loss of shareholders through net redemptions of
their shares."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 56, 642, 772, 773, 6654
of this title.
-End-
-CITE-
26 USC Sec. 68 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
-HEAD-
Sec. 68. Overall limitation on itemized deductions
-STATUTE-
(a) General rule
In the case of an individual whose adjusted gross income exceeds
the applicable amount, the amount of the itemized deductions
otherwise allowable for the taxable year shall be reduced by the
lesser of -
(1) 3 percent of the excess of adjusted gross income over the
applicable amount, or
(2) 80 percent of the amount of the itemized deductions
otherwise allowable for such taxable year.
(b) Applicable amount
(1) In general
For purposes of this section, the term "applicable amount"
means $100,000 ($50,000 in the case of a separate return by a
married individual within the meaning of section 7703).
(2) Inflation adjustments
In the case of any taxable year beginning in a calendar year
after 1991, each dollar amount contained in paragraph (1) shall
be increased by an amount equal to -
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year begins,
by substituting "calendar year 1990" for "calendar year 1992"
in subparagraph (B) thereof.
(c) Exception for certain itemized deductions
For purposes of this section, the term "itemized deductions" does
not include -
(1) the deduction under section 213 (relating to medical, etc.
expenses),
(2) any deduction for investment interest (as defined in
section 163(d)), and
(3) the deduction under section 165(a) for casualty or theft
losses described in paragraph (2) or (3) of section 165(c) or for
losses described in section 165(d).
(d) Coordination with other limitations
This section shall be applied after the application of any other
limitation on the allowance of any itemized deduction.
(e) Exception for estates and trusts
This section shall not apply to any estate or trust.
-SOURCE-
(Added Pub. L. 101-508, title XI, Sec. 11103(a), Nov. 5, 1990, 104
Stat. 1388-406; amended Pub. L. 103-66, title XIII, Secs.
13201(b)(3)(E), 13204, Aug. 10, 1993, 107 Stat. 459, 462; Pub. L.
105-277, div. J, title IV, Sec. 4004(b)(2), Oct. 21, 1998, 112
Stat. 2681-911; Pub. L. 107-16, title I, Sec. 103(a), June 7, 2001,
115 Stat. 44.)
-STATAMEND-
ADJUSTMENT OF APPLICABLE AMOUNT UNDER THIS SECTION FOR TAXABLE
YEARS BEGINNING IN 2004
For adjustment of "applicable amount" for determining limitation
on itemized deductions under this section for taxable years
beginning in 2004, see section 3.11 of Revenue Procedure 2003-85,
set out as a note under section 1 of this title.
ENACTMENT OF SUBSECTIONS (F) AND (G)
Pub. L. 107-16, title I, Secs. 103, 901, June 7, 2001, 115 Stat.
44, 150, provided that, applicable to taxable years beginning after
Dec. 31, 2005, this section is temporarily amended by adding
subsections (f) and (g) to read as follows:
(f) Phaseout of limitation
(1) In general
In the case of taxable years beginning after December 31, 2005,
and before January 1, 2010, the reduction under subsection (a)
shall be equal to the applicable fraction of the amount which
would (but for this subsection) be the amount of such reduction.
(2) Applicable fraction
For purposes of paragraph (1), the applicable fraction shall be
determined in accordance with the following table:
For taxable years beginning 3The applicable
in calendar year - fraction is -
--------------------------------------------------------------------
2006 and 2007 (!2/3)
2008 and 2009 1/3 .
--------------------------------------------------------------------
(g) Termination
This section shall not apply to any taxable year beginning after
December 31, 2009.
See Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
1998 - Subsec. (c)(3). Pub. L. 105-277 substituted "for casualty
or theft losses described in paragraph (2) or (3) of section 165(c)
or for losses described in section 165(d)" for "for losses
described in subsection (c)(3) or (d) of section 165".
1993 - Subsec. (b)(2)(B). Pub. L. 103-66, Sec. 13201(b)(3)(E),
substituted "1992" for "1989".
Subsec. (f). Pub. L. 103-66, Sec. 13204, struck out heading and
text of subsec. (f). Text read as follows: "This section shall not
apply to any taxable year beginning after December 31, 1995."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title I, Sec. 103(b), June 7, 2001, 115 Stat. 45,
provided that: "The amendment made by this section [amending this
section] shall apply to taxable years beginning after December 31,
2005."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-277, div. J, title IV, Sec. 4004(c)(3), Oct. 21,
1998, 112 Stat. 2681-911, provided that: "The amendment made by
subsection (b)(2) [amending this section] shall apply to taxable
years beginning after December 31, 1990."
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by section 13201(b)(3)(E) of Pub. L. 103-66 applicable
to taxable years beginning after Dec. 31, 1992, see section
13201(c) of Pub. L. 103-66, set out as a note under section 1 of
this title.
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31,
1990, see section 11103(e) of Pub. L. 101-508, set out as an
Effective Date of 1990 Amendment note under section 1 of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1, 56, 773 of this title.
-End-
-CITE-
26 USC PART II - ITEMS SPECIFICALLY INCLUDED IN GROSS
INCOME 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART II - ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME
-HEAD-
PART II - ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME
-MISC1-
Sec.
71. Alimony and separate maintenance payments.
72. Annuities; certain proceeds of endowment and life
insurance contracts.
73. Services of child.
74. Prizes and awards.
75. Dealers in tax-exempt securities.
[76. Repealed.]
77. Commodity credit loans.
78. Dividends received f |
