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

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No tax deduction is allowed for money spent on political-party advertising, dinners, or inaugural events whose proceeds benefit a party or candidate. "Political party" includes party committees and groups that accept political contributions or make political expenditures. Proceeds only count as helping a candidate if they aid the campaign and aren't earned through the candidate's regular job or business.

(a) Disallowance of deduction — No deduction is otherwise allowed under this chapter for any amount paid or spent on: (1) advertising in a political party's convention program, or in any other publication, if any of that publication's proceeds go, or are meant to go, to a political party or candidate; (2) tickets to any dinner or program, if any of its proceeds go, or are meant to go, to a political party or candidate; or (3) tickets to an inaugural ball, gala, parade, or concert, or any similar event tied to 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 political contributions (as defined in section 271(b)(2)) or makes political expenditures (as defined in section 271(b)(3)) to influence the selection, nomination, or election of anyone to any federal, state, or local elective office, or the choice of presidential or vice-presidential electors, whether or not that person or those electors are actually selected, nominated, or elected. (2) "Proceeds inuring to or for the use of political candidates" — proceeds count as benefiting a candidate only if (A) they may be used, directly or indirectly, to further that person's campaign for election, nomination, or selection to office, and (B) the candidate doesn't receive them in the normal course of a trade or business, other than the "business" of holding elective office. (c) Cross reference — For rules disallowing certain entertainment expenses, see section 274.

the actual law source: uscode.house.gov ↗public domain

(a) Disallowance of deduction

No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred for—

(1)

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,

(2)

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

(3)

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.

(b) Definitions

For purposes of this section—

(1) Political party

The term “political party” means—

(A)

a political party;

(B)

a National, State, or local committee of a political party; or

(C)

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.

(2) Proceeds inuring to or for the use of political candidates

Proceeds shall be treated as inuring to or for the use of a political candidate only if—

(A)

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

(B)

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).

For disallowance of certain entertainment, etc., expenses, see section 274.

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.)

history & why it existsrecord from the source credit

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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