26 U.S.C. § 276 — Certain indirect contributions to political parties
submitted 60 years ago by Pub. L. 89-368 to r/title-26-INTERNAL-REVENUE-CODE · 340 words · no verdicts yet
You can't deduct money spent on political-party ads, dinners, or events. This covers convention ads, fundraising dinners, and inaugural events tied to a party or candidate. The law defines "political party" and explains when money counts as helping a candidate.
(a) Disallowance of deduction: No deduction is allowed for amounts paid or incurred for (1) advertising in a political party's convention program, or in any other publication, if any of the proceeds go, directly or indirectly, to or for a political party or candidate; (2) admission to a dinner or program, if any of the proceeds go, directly or indirectly, to or for a political party or candidate; or (3) admission to an inaugural ball, gala, parade, concert, or similar event identified with a political party or candidate.
(b) Definitions:
(1) "Political party" means (A) a political party, (B) a national, state, or local committee of a political party, or (C) any committee, association, or organization, incorporated or not, that directly or indirectly accepts contributions (as section 271(b)(2) defines them) or makes expenditures (as section 271(b)(3) defines them) to influence who is selected, nominated, or elected to any federal, state, or local elected office, or who becomes a presidential or vice-presidential elector — whether or not that person is actually selected, nominated, or elected.
(2) Proceeds count as helping a political candidate only if (A) they can be used, directly or indirectly, to further that person's candidacy for selection, nomination, or election, and (B) the candidate does not receive them in the ordinary course of a trade or business* — other than the "business" of holding elected public office.
(c) Cross reference: See section 274 for the disallowance of certain entertainment and similar expenses.
No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred for—
advertising in a convention program of a political party, or in any other publication if any part of the proceeds of such publication directly or indirectly inures (or is intended to inure) to or for the use of a political party or a political candidate,
admission to any dinner or program, if any part of the proceeds of such dinner or program directly or indirectly inures (or is intended to inure) to or for the use of a political party or a political candidate, or
admission to an inaugural ball, inaugural gala, inaugural parade, or inaugural concert, or to any similar event which is identified with a political party or a political candidate.
For purposes of this section—
The term “political party” means—
a political party;
a National, State, or local committee of a political party; or
a committee, association, or organization, whether incorporated or not, which directly or indirectly accepts contributions (as defined in section 271(b)(2)) or make expenditures (as defined in section 271(b)(3)) for the purpose of influencing or attempting to influence the selection, nomination, or election of any individual to any Federal, State, or local elective public office, or the election of presidential and vice-presidential electors, whether or not such individual or electors are selected, nominated, or elected.
Proceeds shall be treated as inuring to or for the use of a political candidate only if—
such proceeds may be used directly or indirectly for the purpose of furthering his candidacy for selection, nomination, or election to any elective public office, and
such proceeds are not received by such candidate in the ordinary course of a trade or business* (other than the trade or business of holding elective public office).
Source credit: (Added Pub. L. 89–368, title III, § 301(a), Mar. 15, 1966, 80 Stat. 66; amended Pub. L. 90–364, title I, § 108(a), June 28, 1968, 82 Stat. 268; Pub. L. 93–443, title IV, § 406(d), Oct. 15, 1974, 88 Stat. 1296.)
- 1966Enacted · Pub. L. 89-368 · 80 Stat. 66
- 1968Amended · Pub. L. 90-364 · 82 Stat. 268
- 1974Amended · Pub. L. 93-443 · 88 Stat. 1296
A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-368 on 1966-03-15.
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