26 U.S.C. § 212 — Expenses for production of income
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 62 words · no verdicts yet
This tax law lets individuals deduct certain income-related expenses. You can deduct ordinary, necessary costs to produce or collect income, or to manage property held for income. You can also deduct costs tied to figuring, collecting, or refunding any tax.
This section is a single, undivided rule with a three-part list.
It applies only to individuals. It allows an individual to deduct all the ordinary and necessary expenses they paid or incurred during the tax year, as long as those expenses fall into one of three categories:
(1) expenses for producing or collecting income;
(2) expenses for managing, conserving, or maintaining property that is held for producing income; or
(3) expenses connected with determining, collecting, or getting a refund of any tax.
The section does not set a dollar limit on these deductions, and it does not define "ordinary and necessary" beyond using those words.
In the case of an individual, there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year*—
for the production or collection of income;
for the management, conservation, or maintenance of property held for the production of income; or
in connection with the determination, collection, or refund of any tax.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 69.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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