r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“unlawful discrimination” applies in that section

the term “unlawful discrimination” means an act that is unlawful under any of the following: (1) Section 302 of the Civil Rights Act of 1991 ( 42 U.S.C. 2000e–16b ). (2) Section 201, 202, 203, 204, 205, 206, 207, or 208 of the Congressional Accountability Act of 1995 ( 2 U.S.C. 1311 , 1312, 1313, 1314, 1315, 1316, or 1317). 1 (3) The National Labor Relations Act ( 29 U.S.C. 151 et seq.). (4) The Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq.). (5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 ( 29 U.S.C. 623 or 633a). (6) Section 501 or 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 791 or 794).

“itemized deductions” applies in that section

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) any deduction referred to in any paragraph of subsection (b). (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.

“standard deduction” applies in that section

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) 200 percent of the dollar amount in effect under subparagraph (C) 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)), or (C) $3,000 in any other case.

“taxable income” applies in that section

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,

“ordinary income” applies in that section

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).

“ordinary loss” applies in that section

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.

“community income” applies in that section

The term “community income” means income which, under applicable community property laws, is treated as community income. (3) Community property laws

“community property laws” applies in that section

The term “community property laws” means the community property laws of a State, a foreign country, or a possession of the United States.

“earned income” applies in that section

The term “earned income” has the meaning given to such term by section 911(d)(2). (2) Community income

“educator expenses” applies in that section

the term “educator expenses” means expenses of a type which would be described in section 62(a)(2)(D) if— (1) such section were applied— (A) without regard to the dollar limitation, (B) without regard to “(other than nonathletic supplies for courses of instruction in health or physical education)” in clause (ii) thereof, and (C) by substituting “as part of instructional activity” for “in the classroom” in clause (ii) thereof, and (2) section 62(d)(1)(A) were applied by inserting “, interscholastic sports administrator or coach,” after “counselor” (h) Suspension for taxable years beginning after 2017 Notwithstanding subsection (a), no miscellaneous itemized deduction shall be allowed for any …

“impairment-related work expenses” applies in that 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).

“miscellaneous itemized deductions” applies in that 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 …

“publicly offered regulated investment company” applies in that section

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.

“5-percent owner” applies in that section

the term “5-percent owner” means any individual who, at any time during the 5 plan years preceding the plan year ending in the taxable year in which the amount is received, is a 5-percent owner (as defined in section 416(i)(1)(B)). (6) Owner-employee defined For purposes of this subsection,

“accumulated deductible employee contributions” applies in that section

The term “accumulated deductible employee contributions” means the deductible employee contributions— (i) increased by the amount of income and gain allocable to such contributions, and (ii) reduced by the sum of the amount of loss and expense allocable to such contributions and the amounts distributed with respect to the employee which are attributable to such contributions (or income or gain allocable to such contributions). (C) Qualified employer plan

“applicable date” applies in that section

the terms “applicable date”, “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under subsection (t)(11), and;

“applicable eligible retirement plan” applies in that section

The term “applicable eligible retirement plan” means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan. (II) Exemption of distributions from trustee to trustee transfer and withholding rules For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution. (III) Taxpayer must include TIN A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible adoptee unless the taxpayer includes the name, age, and TIN of such child or eligible adoptee on the taxpayer’s return of tax for the taxable year.

“applicable nontaxable contribution” applies in that section

the term “applicable nontaxable contribution” means any employer or employee contribution— (A) which was made with respect to compensation— (i) for labor or personal services performed by an employee who, at the time the labor or services were performed, was a nonresident alien for purposes of the laws of the United States in effect at such time, and (ii) which is treated as from sources without the United States, and (B) which was not subject to income tax (and would have been subject to income tax if paid as cash compensation when the services were rendered) under the laws of the United States or any foreign country. (3) Applicable nontaxable earnings For purposes of this subsection,

“applicable nontaxable earnings” applies in that section

the term “applicable nontaxable earnings” means earnings— (A) which are paid or accrued with respect to any employer or employee contribution which was made with respect to compensation for labor or personal services performed by an employee, (B) with respect to which the employee was at the time the earnings were paid or accrued a nonresident alien for purposes of the laws of the United States, and (C) which were not subject to income tax under the laws of the United States or any foreign country.

“applicable period” applies in that section

the term “applicable period” has the meaning given such term under subsection (t)(8). (q) 10-percent penalty for premature distributions from annuity contracts (1) Imposition of penalty If any taxpayer receives any amount under an annuity contract, the taxpayer’s tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the portion of such amount which is includible in gross income.

“controlled group” applies in that section

the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414. (v) Amount distributed may be repaid (I) In general Any individual who receives a qualified birth or adoption distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), …

“date of acquisition” applies in that section

The term “date of acquisition” means the date— (I) on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or (II) on which construction or reconstruction of such a principal residence is commenced.

“deductible employee contributions” applies in that section

The term “deductible employee contributions” means any qualified voluntary employee contribution (as defined in section 219(e)(2)) made after December 31, 1981 , in a taxable year beginning after such date and made for a taxable year beginning before January 1, 1987 , and allowable as a deduction under section 219(a) for such taxable year. (B) Accumulated deductible employee contributions

“deferral period” applies in that section

the term “deferral period” means the period beginning with the taxable year in which (without regard to paragraph (2)(A)(iv)) the distribution would have been includible in gross income and ending with the taxable year in which the modification described in subparagraph (A) occurs.

“designated beneficiary” applies in that section

the term “designated beneficiary” means any individual designated a beneficiary by the holder of the contract. (5) Exception for certain annuity contracts This subsection shall not apply to any annuity contract— (A) which is provided— (i) under a plan described in section 401(a) which includes a trust exempt from tax under section 501, or (ii) under a plan described in section 403(a), (B) which is described in section 403(b), (C) which is an individual retirement annuity or provided under an individual retirement account or annuity, or (D) which is a qualified funding asset (as defined in section 130(d), but without regard to whether there is a qualified assignment).

“domestic abuse” applies in that section

The term “domestic abuse” means physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.

“eligible adoptee” applies in that section

The term “eligible adoptee” means any individual (other than a child of the taxpayer’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support. (iv) Treatment of plan distributions (I) In general If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such …

“emergency personal expense distribution” applies in that section

the term “emergency personal expense distribution” means any distribution from an applicable eligible retirement plan (as defined in subparagraph (H)(vi)(I)) to an individual for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. The administrator of an applicable eligible retirement plan may rely on an employee’s written certification that the employee satisfies the conditions of the preceding sentence in determining whether any distribution is an emergency personal expense distribution.

“employee” applies in that section

the term “employee” includes any participant, and in the case of an individual retirement plan, the individual for whose benefit such plan was established. (6) Special rules for simple retirement accounts (A) In general In the case of any amount received from a simple retirement account (within the meaning of section 408(p)) during the 2-year period beginning on the date such individual first participated in any qualified salary reduction arrangement maintained by the individual’s employer under section 408(p)(2), paragraph (1) shall be applied by substituting “25 percent” for “10 percent”.

“endowment contract” applies in that section

the term “endowment contract” includes a face-amount certificate, as defined in section 2(a)(15) of the Investment Company Act of 1940 (15 U.S.C., sec. 80a–2), issued after December 31, 1954 . (m) Special rules applicable to employee annuities and distributions under employee plans [(1) Repealed. Pub. L. 93–406, title II, § 2001(h)(2) , Sept. 2, 1974 , 88 Stat.

“first-time homebuyer” applies in that section

The term “first-time homebuyer” means any individual if— (I) such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition of the principal residence to which this paragraph applies, and (II) subsection (h) or (k) of section 1034 4 (as in effect on the day before the date of the enactment of this paragraph) did not suspend the running of any period of time specified in section 1034 4 (as so in effect) with respect to such individual on the day before the date the distribution is applied pursuant to subparagraph (A). (ii) Principal residence

“government plan” applies in that section

The term “government plan” has the meaning given such term by subsection (p)(3)(B). (6) Ordering rules Unless the plan specifies otherwise, any distribution from such plan shall not be treated as being made from the accumulated deductible employee contributions, until all other amounts to the credit of the employee have been distributed. (p) Loans treated as distributions For purposes of this section— (1) Treatment as distributions (A) Loans If during any taxable year a participant or beneficiary receives (directly or indirectly) any amount as a loan from a qualified employer plan, such amount shall be treated as having been received by such individual as a distribution under such plan.

“immediate annuity” applies in that section

the term “immediate annuity” means an annuity— (A) which is purchased with a single premium or annuity consideration, (B) the annuity starting date (as defined in subsection (c)(4)) of which commences no later than 1 year from the date of the purchase of the annuity, and (C) which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period.

“incident period” applies in that section

the terms “applicable date”, “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under subsection (t)(11), and;

“income on the contract” applies in that section

the term “income on the contract” means, with respect to any taxable year of the policyholder, the excess of— (i) the sum of the net surrender value of the contract as of the close of the taxable year plus all distributions under the contract received during the taxable year or any prior taxable year, reduced by (ii) the sum of the amount of net premiums under the contract for the taxable year and prior taxable years and amounts includible in gross income for prior taxable years with respect to such contract under this subsection.

“net premiums” applies in that section

the term “net premiums” means the amount of premiums paid under the contract reduced by any policyholder dividends. (3) Exceptions This subsection shall not apply to any annuity contract which— (A) is acquired by the estate of a decedent by reason of the death of the decedent, (B) is held under a plan described in section 401(a) or 403(a), under a program described in section 403(b), or under an individual retirement plan, (C) is a qualified funding asset (as defined in section 130(d), but without regard to whether there is a qualified assignment), (D) is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a) and is held by the employer until all …

“owner-employee” applies in that section

the term “owner-employee” has the meaning assigned to it by section 401(c)(3) and includes an individual for whose benefit an individual retirement account or annuity described in section 408(a) or (b) is maintained. For purposes of the preceding sentence,

“primary annuitant” applies in that section

the term “primary annuitant” means the individual, the events in the life of whom are of primary importance in affecting the timing or amount of the payout under the contract. (7) Treatment of changes in primary annuitant where holder of contract is not an individual For purposes of this subsection, in the case of a holder of an annuity contract which is not an individual, if there is a change in a primary annuitant (as defined in paragraph (6)(B)), such change shall be treated as the death of the holder.

“principal residence” applies in that section

The term “principal residence” has the same meaning as when used in section 121. (iii) Date of acquisition

“qualified acquisition costs” applies in that section

the term “qualified acquisition costs” means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs. (D) First-time homebuyer; other definitions For purposes of this paragraph— (i) First-time homebuyer

“qualified birth or adoption distribution” applies in that section

The term “qualified birth or adoption distribution” means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized. (II) Eligible adoptee

“qualified disaster” applies in that section

the terms “applicable date”, “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under subsection (t)(11), and;

“qualified disaster area” applies in that section

the terms “applicable date”, “qualified disaster”, “qualified disaster area”, and “incident period” have the meaning given such terms under subsection (t)(11), and;

“qualified disaster recovery distribution” applies in that section

the term “qualified disaster recovery distribution” means any distribution made— (i) on or after the first day of the incident period of a qualified disaster and before the date that is 180 days after the applicable date with respect to such disaster, and (ii) to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster.

“qualified distribution” applies in that section

the term “qualified distribution” means any distribution— (I) which is a qualified first-time homebuyer distribution, (II) which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and (III) which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period. (iii) Applicable period For purposes of this subparagraph,

“qualified employer plan” applies in that section

The term “qualified employer plan” has the meaning given to such term by subsection (p)(3)(A)(i). (D) Government plan

“qualified employer retirement plan” applies in that section

the term “qualified employer retirement plan” means any plan or contract described in paragraph (1), (2), or (3) of section 4974(c). (2) Treatment of employee contributions under defined contribution plans For purposes of this section, employee contributions (and any income allocable thereto) under a defined contribution plan may be treated as a separate contract. (3) Treatment of contributions to a pension-linked emergency savings account For purposes of this section, contributions to a pension-linked emergency savings account to which section 402A(e) applies (and any income allocable thereto) may be treated as a separate contract.

“qualified first-time homebuyer distribution” applies in that section

The term “qualified first-time homebuyer distribution” means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual’s spouse.

“qualified higher education expenses” applies in that section

The term “qualified higher education expenses” means qualified higher education expenses (as defined in section 529(e)(3)) for education furnished to— (i) the taxpayer, (ii) the taxpayer’s spouse, or (iii) any child (as defined in section 152(f)(1)) or grandchild of the taxpayer or the taxpayer’s spouse, at an eligible educational institution (as defined in section 529(e)(5)). (B) Coordination with other benefits The amount of qualified higher education expenses for any taxable year shall be reduced as provided in section 25A(g)(2). (8) Qualified first-time homebuyer distributions For purposes of paragraph (2)(F)— (A) In general

“qualified individual” applies in that section

The term “qualified individual” means any individual— (I) whose principal place of abode at any time during the incident period of any qualified disaster is located in the qualified disaster area with respect to such qualified disaster, and (II) who has sustained an economic loss by reason of such qualified disaster. (ii) Applicable period The applicable period with respect to any disaster is the period— (I) beginning on the applicable date with respect to such disaster, and (II) ending on the date that is 180 days after such applicable date. (iii) Other terms For purposes of this paragraph—;

“qualified public safety employee” applies in that section

the term “qualified public safety employee” means— (i) any employee of a State or political subdivision of a State who provides police protection, firefighting services, emergency medical services, or services as a corrections officer or as a forensic security employee providing for the care, custody, and control of forensic patients for any area within the jurisdiction of such State or political subdivision, or (ii) any Federal law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code, any Federal customs and border protection officer described in section 8331(31) or 8401(36) of such title, any Federal firefighter described in section 8331(21) or …

“qualified reservist distribution” applies in that section

the term “qualified reservist distribution” means any distribution to an individual if— (I) such distribution is from an individual retirement plan, or from amounts attributable to employer contributions made pursuant to elective deferrals described in subparagraph (A) or (C) of section 402(g)(3) or section 501(c)(18)(D)(iii), (II) such individual was (by reason of being a member of a reserve component (as defined in section 101 of title 37 , United States Code)) ordered or called to active duty for a period in excess of 179 days or for an indefinite period, and (III) such distribution is made during the period beginning on the date of such order or call and ending at the close of the …

“refund of the consideration paid” applies in that section

the term “refund of the consideration paid” includes amounts payable after the death of an annuitant by reason of a provision in the contract for a life annuity with minimum period of payments certain, but (if part of the consideration was contributed by an employer) does not include that part of any payment to a beneficiary (or to the estate of the annuitant) which is not attributable to the consideration paid by the employee for the contract as determined under paragraph (1)(A).

“terminally ill individual” applies in that section

the term “terminally ill individual” has the same meaning given such term under section 101(g)(4)(A), except that “84 months” shall be substituted for “24 months”. (iii) Documentation For purposes of this subparagraph, an employee shall not be considered to be a terminally ill individual unless such employee furnishes sufficient evidence to the plan administrator in such form and manner as the Secretary may require. (iv) Amount distributed may be repaid Rules similar to the rules of subparagraph (H)(v) shall apply with respect to an individual who receives a distribution to which clause (i) applies.

“tier 1 railroad retirement benefit” applies throughout this title

the term “tier 1 railroad retirement benefit” has the meaning given such term by section 86(d)(4). (s) Required distributions where holder dies before entire interest is distributed (1) In general A contract shall not be treated as an annuity contract for purposes of this title unless it provides that— (A) if any holder of such contract dies on or after the annuity starting date and before the entire interest in such contract has been distributed, the remaining portion of such interest will be distributed at least as rapidly as under the method of distributions being used as of the date of his death, and (B) if any holder of such contract dies before the annuity starting date, the entire …

“transferee” applies in that section

the term “transferee” includes a beneficiary of, or the estate of, the transferee. (h) Option to receive annuity in lieu of lump sum If— (1) a contract provides for payment of a lump sum in full discharge of an obligation under the contract, subject to an option to receive an annuity in lieu of such lump sum; (2) the option is exercised within 60 days after the day on which such lump sum first became payable; and (3) part or all of such lump sum would (but for this subsection) be includible in gross income by reason of subsection (e)(1), then, for purposes of this subtitle, no part of such lump sum shall be considered as includible in gross income at the time such lump sum first became …

“parent” applies in that section

the term “parent” includes an individual who is entitled to the services of a child by reason of having parental rights and duties in respect of the child. (d) Cross reference For assessment of tax against parent in certain cases, see section 6201(c).

“cost of securities sold” applies in that section

The term “cost of securities sold” means the amount ascertained by subtracting the inventory value of the closing inventory of a taxable year from the sum of— (A) the inventory value of the opening inventory for such year, and (B) the cost of securities and other property purchased during such year which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year.

“municipal bond” applies in that section

The term “municipal bond” means any obligation issued by a government or political subdivision thereof if the interest on such obligation is excludable from gross income; but such term does not include such an obligation if— (A) (i) it is sold or otherwise disposed of by the taxpayer within 30 days after the date of its acquisition by him, or (ii) its earliest maturity or call date is a date more than 5 years from the date on which it was acquired by the taxpayer; and (B) when it is sold or otherwise disposed of by the taxpayer— (i) in the case of a sale, the amount realized, or (ii) in the case of any other disposition, its fair market value at the time of such disposition, is higher than …

“church employee” applies in that section

the terms “church plan” and “church employee” have the meaning given such terms by paragraphs (1) and (3)(B) of section 414(e), respectively, except that— (i) section 414(e) shall be applied by substituting “section 501(c)(3)” for “section 501” each place it appears, and (ii) the term “church employee” shall not include an employee of— (I) an organization described in section 170(b)(1)(A)(ii) above the secondary school level (other than a school for religious training), (II) an organization described in section 170(b)(1)(A)(iii), and (III) an organization described in section 501(c)(3), the basis of the exemption for which is substantially similar to the basis for exemption of an …

“church plan” applies in that section

the terms “church plan” and “church employee” have the meaning given such terms by paragraphs (1) and (3)(B) of section 414(e), respectively, except that— (i) section 414(e) shall be applied by substituting “section 501(c)(3)” for “section 501” each place it appears, and (ii) the term “church employee” shall not include an employee of— (I) an organization described in section 170(b)(1)(A)(ii) above the secondary school level (other than a school for religious training), (II) an organization described in section 170(b)(1)(A)(iii), and (III) an organization described in section 501(c)(3), the basis of the exemption for which is substantially similar to the basis for exemption of an …

“discriminatory group-term life insurance plan” applies in that section

the term “discriminatory group-term life insurance plan” means any plan of an employer for providing group-term life insurance unless— (A) the plan does not discriminate in favor of key employees as to eligibility to participate, and (B) the type and amount of benefits available under the plan do not discriminate in favor of participants who are key employees.

“employee” applies in that section

the term “employee” includes a former employee. (f) Exception for life insurance purchased in connection with qualified transfer of excess pension assets Subsection (b)(3) and section 72(m)(3) shall not apply in the case of any cost paid (whether directly or indirectly) with assets held in an applicable life insurance account (as defined in section 420(e)(4)) under a defined benefit plan.

“key employee” applies in that section

the term “key employee” has the meaning given to such term by paragraph (1) of section 416(i). Such term also includes any former employee if such employee when he retired or separated from service was a key employee. (7) Exemption for church plans (A) In general This subsection shall not apply to a church plan maintained for church employees. (B) Definitions For purposes of subparagraph (A),

“political organization” applies in that section

the term “political organization” has the meaning given to such term by section 527(e)(1).

“unemployment compensation” applies in that section

the term “unemployment compensation” means any amount received under a law of the United States or of a State which is in the nature of unemployment compensation. (c) Special rule for 2020 (1) In general In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.

“adjusted base amount” applies in that section

The term “adjusted base amount” means— (A) except as otherwise provided in this paragraph, $34,000, (B) $44,000 in the case of a joint return, and (C) zero in the case of a taxpayer described in paragraph (1)(C). (d) Social security benefit (1) In general For purposes of this section,

“base amount” applies in that section

The term “base amount” means— (A) except as otherwise provided in this paragraph, $25,000, (B) $32,000 in the case of a joint return, and (C) zero in the case of a taxpayer who— (i) is married as of the close of the taxable year (within the meaning of section 7703) but does not file a joint return for such year, and (ii) does not live apart from his spouse at all times during the taxable year. (2) Adjusted base amount

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means adjusted gross income— (A) determined without regard to this section and sections 85(c), 135, 137, 221, 911, 931, and 933, and (B) increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. (c) Base amount and adjusted base amount For purposes of this section— (1) Base amount

“social security benefit” applies in that section

the term “social security benefit” means any amount received by the taxpayer by reason of entitlement to— (A) a monthly benefit under title II of the Social Security Act, or (B) a tier 1 railroad retirement benefit. (2) Adjustment for repayments during year (A) In general For purposes of this section, the amount of social security benefits received during any taxable year shall be reduced by any repayment made by the taxpayer during the taxable year of a social security benefit previously received by the taxpayer (whether or not such benefit was received during the taxable year).

“tier 1 railroad retirement benefit” applies in that section

the term “tier 1 railroad retirement benefit” means— (A) the amount of the annuity under the Railroad Retirement Act of 1974 equal to the amount of the benefit to which the taxpayer would have been entitled under the Social Security Act if all of the service after December 31, 1936 , of the employee (on whose employment record the annuity is being paid) had been included in the term “employment” as defined in the Social Security Act, and (B) a monthly annuity amount under section 3(f)(3) of the Railroad Retirement Act of 1974.

“Federal irrigation water” applies in that section

The term “Federal irrigation water” means any water made available for agricultural purposes from the operation of any reclamation or irrigation project referred to in paragraph (8) of section 202 of the Reclamation Reform Act of 1982. (c) Denial of deduction No deduction shall be allowed under this subtitle by reason of any inclusion in gross income under subsection (a).

“illegal Federal irrigation subsidy” applies in that section

The term “illegal Federal irrigation subsidy” means the excess (if any) of— (A) the amount required to be paid for any Federal irrigation water delivered to the taxpayer during the taxpayer year, over (B) the amount paid for such water. (2) Federal irrigation water

“applicable percentage” applies in that section

The term “applicable percentage” means— (i) 140 percent in the case of an insured with an attained age at the beginning of the contract year of 40 or less, and (ii) in the case of an insured with an attained age of more than 40 as of the beginning of the contract year, 140 percent reduced (but not below 105 percent) by one percent for each year in excess of 40. (D) Cash value The cash value of any contract shall be determined without regard to any deduction for any surrender charge or policy loan. (E) Qualified additional benefits

“applicable policyholder” applies in that section

The term “applicable policyholder” means, with respect to any employer-owned life insurance contract, the person described in subparagraph (A)(i) which owns the contract. (ii) Related persons

“chronically ill individual” applies in that section

The term “chronically ill individual” has the meaning given such term by section 7702B(c)(2); except that such term shall not include a terminally ill individual. (C) Qualified long-term care services

“contract” applies in that section

The terms “flexible premium life insurance contract” and “contract” mean a life insurance contract (including any qualified additional benefits) which provides for the payment of one or more premiums which are not fixed by the insurer as to both timing and amount. Such terms do not include that portion of any contract which is treated under State law as providing any annuity benefits other than as a settlement option. (B) Premiums paid

“employee” applies in that section

the term “employee” includes a self-employed individual (as defined in section 401(c)(1)). (4) Relief with respect to astronauts The provisions of this subsection shall apply to any astronaut whose death occurs in the line of duty. (j) Treatment of certain employer-owned life insurance contracts (1) General rule In the case of an employer-owned life insurance contract, the amount excluded from gross income of an applicable policyholder by reason of paragraph (1) of subsection (a) shall not exceed an amount equal to the sum of the premiums and other amounts paid by the policyholder for the contract.

“employer-owned life insurance contract” applies in that section

the term “employer-owned life insurance contract” means a life insurance contract which— (i) is owned by a person engaged in a trade or business and under which such person (or a related person described in subparagraph (B)(ii)) is directly or indirectly a beneficiary under the contract, and (ii) covers the life of an insured who is an employee with respect to the trade or business of the applicable policyholder on the date the contract is issued.

“flexible premium life insurance contract” applies in that section

The terms “flexible premium life insurance contract” and “contract” mean a life insurance contract (including any qualified additional benefits) which provides for the payment of one or more premiums which are not fixed by the insurer as to both timing and amount. Such terms do not include that portion of any contract which is treated under State law as providing any annuity benefits other than as a settlement option. (B) Premiums paid

“guideline level premium” applies in that section

The term “guideline level premium” means the level annual amount, payable over the longest period permitted under the contract (but ending not less than 20 years from date of issue or not later than age 95, if earlier), computed on the same basis as the guideline single premium, except that subparagraph (B)(ii) shall be applied by substituting “4 percent” for “6 percent”.

“guideline premium limitation” applies in that section

The term “guideline premium limitation” means, as of any date, the greater of— (i) the guideline single premium, or (ii) the sum of the guideline level premiums to such date. (B) Guideline single premium

“guideline single premium” applies in that section

The term “guideline single premium” means the premium at issue with respect to future benefits under the contract (without regard to any qualified additional benefit), and with respect to any charges for qualified additional benefits, at the time of a determination under subparagraph (A) or (E) and which is based on— (i) the mortality and other charges guaranteed under the contract, and (ii) interest at the greater of an annual effective rate of 6 percent or the minimum rate or rates guaranteed upon issue of the contract. (C) Guideline level premium

“insured” applies in that section

The term “insured” means, with respect to an employer-owned life insurance contract, an individual covered by the contract who is a United States citizen or resident. In the case of a contract covering the joint lives of 2 individuals, references to an insured include both of the individuals.

“physician” applies in that section

The term “physician” has the meaning given to such term by section 1861(r)(1) of the Social Security Act ( 42 U.S.C. 1395x(r)(1) ). (5) Exception for business-related policies This subsection shall not apply in the case of any amount paid to any taxpayer other than the insured if such taxpayer has an insurable interest with respect to the life of the insured by reason of the insured being a director, officer, or employee of the taxpayer or by reason of the insured being financially interested in any trade or business carried on by the taxpayer.

“premiums paid” applies in that section

The term “premiums paid” means the premiums paid under the contract less any amounts (other than amounts includible in gross income) to which section 72(e) applies. If, in order to comply with the requirements of paragraph (1)(A), any portion of any premium paid during any contract year is returned by the insurance company (with interest) within 60 days after the end of a contract year— (i) the amount so returned (excluding interest) shall be deemed to reduce the sum of the premiums paid under the contract during such year, and (ii) notwithstanding the provisions of section 72(e), the amount of any interest so returned shall be includible in the gross income of the recipient.

“qualified additional benefits” applies in that section

The term “qualified additional benefits” means any— (i) guaranteed insurability, (ii) accidental death benefit, (iii) family term coverage, or (iv) waiver of premium. (F) Premium payments not disqualifying contract The payment of a premium which would result in the sum of the premiums paid exceeding the guideline premium limitation shall be disregarded for purposes of paragraph (1)(A)(i) if the amount of such premium does not exceed the amount necessary to prevent the termination of the contract without cash value on or before the end of the contract year.

“qualified long-term care services” applies in that section

The term “qualified long-term care services” has the meaning given such term by section 7702B(c). (D) Physician

“reportable policy sale” applies in that section

the term “reportable policy sale” means the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured apart from the acquirer’s interest in such life insurance contract. For purposes of the preceding sentence, the term “indirectly” applies to the acquisition of an interest in a partnership, trust, or other entity that holds an interest in the life insurance contract. [(b) Repealed. Pub. L. 104–188, title I, § 1402(a) , Aug. 20, 1996 , 110 Stat.

“terminally ill individual” applies in that section

The term “terminally ill individual” means an individual who has been certified by a physician as having an illness or physical condition which can reasonably be expected to result in death in 24 months or less after the date of the certification. (B) Chronically ill individual

“viatical settlement provider” applies in that section

The term “viatical settlement provider” means any person regularly engaged in the trade or business of purchasing, or taking assignments of, life insurance contracts on the lives of insureds described in paragraph (1) if— (I) such person is licensed for such purposes (with respect to insureds described in the same subparagraph of paragraph (1) as the insured) in the State in which the insured resides, or (II) in the case of an insured who resides in a State not requiring the licensing of such persons for such purposes with respect to such insured, such person meets the requirements of clause (ii) or (iii), whichever applies to such insured.

“State” applies in that section

The term “State” includes the District of Columbia and any possession of the United States.

“State or local bond” applies in that section

The term “State or local bond” means an obligation of a State or political subdivision thereof. (2) State

“combat-related injury” applies in that section

the term “combat-related injury” means personal injury or sickness— (A) which is incurred— (i) as a direct result of armed conflict, (ii) while engaged in extrahazardous service, or (iii) under conditions simulating war; or (B) which is caused by an instrumentality of war. In the case of an individual who is not described in subparagraph (A) or (B) of paragraph (2), except as provided in paragraph (4), the only amounts taken into account under subsection (a)(4) shall be the amounts which he receives by reason of a combat-related injury.

“highly compensated individual” applies in that section

the term “highly compensated individual” means an individual who is— (A) one of the 5 highest paid officers, (B) a shareholder who owns (with the application of section 318) more than 10 percent in value of the stock of the employer, or (C) among the highest paid 25 percent of all employees (other than employees described in paragraph (3)(B) who are not participants). (6) Self-insured medical reimbursement plan

“qualified taxpayer” applies in that section

the term “qualified taxpayer” means a taxpayer who is— (A) an employee, or (B) the spouse, dependent (as defined for purposes of subsection (b)), or child (as defined for purposes of such subsection) of an employee.

“self-insured medical reimbursement plan” applies in that section

The term “self-insured medical reimbursement plan” means a plan of an employer to reimburse employees for expenses referred to in subsection (b) for which reimbursement is not provided under a policy of accident and health insurance.

“eligible individual” applies in that section

The term “eligible individual” has the meaning given such term by section 223(c)(1). (C) Treatment as rollover contribution A qualified HSA distribution shall be treated as a rollover contribution described in section 223(f)(5). (5) Tax treatment relating to distributions For purposes of this title— (A) In general A qualified HSA distribution shall be treated as a payment described in subsection (d). (B) Comparability excise tax (i) In general Except as provided in clause (ii), section 4980G shall not apply to qualified HSA distributions.

“qualified HSA distribution” applies in that section

The term “qualified HSA distribution” means a distribution from a health flexible spending arrangement or health reimbursement arrangement to the extent that such distribution— (A) does not exceed the lesser of the balance in such arrangement on September 21, 2006 , or as of the date of such distribution, and (B) is contributed by the employer directly to the health savings account of the employee before January 1, 2012 . Such term shall not include more than 1 distribution with respect to any arrangement.

“testing period” applies in that section

The term “testing period” means the period beginning with the month in which the qualified HSA distribution is contributed to the health savings account and ending on the last day of the 12th month following such month. (B) Eligible individual

“adjusted tax attributes” applies in that section

the term “adjusted tax attributes” means the sum of the tax attributes described in subparagraphs (A), (B), (C), (D), (F), and (G) of subsection (b)(2) determined by taking into account $3 for each $1 of the attributes described in subparagraphs (B), (C), and (G) of subsection (b)(2) and the attribute described in subparagraph (F) of subsection (b)(2) to the extent attributable to any passive activity credit carryover. (C) Qualified property For purposes of this paragraph,

“applicable debt instrument” applies in that section

The term “applicable debt instrument” means any debt instrument which was issued by— (i) a C corporation, or (ii) any other person in connection with the conduct of a trade or business by such person. (B) Debt instrument

“debt instrument” applies in that section

The term “debt instrument” means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)). (4) Reacquisition For purposes of this subsection— (A) In general

“debtor corporation” applies in that section

the term “debtor corporation” includes a successor corporation. (E) Partnership rule Under regulations prescribed by the Secretary, rules similar to the rules of the foregoing subparagraphs of this paragraph shall apply with respect to the indebtedness of a partnership.

“depreciable property” applies in that section

The term “depreciable property” has the same meaning as when used in section 1017. (6) Certain provisions to be applied at partner level In the case of a partnership, subsections (a), (b), (c), and (g) shall be applied at the partner level. (7) Special rules for S corporation (A) Certain provisions to be applied at corporate level In the case of an S corporation, subsections (a), (b), (c), and (g) shall be applied at the corporate level, including by not taking into account under section 1366(a) any amount excluded under subsection (a) of this section.

“indebtedness of the taxpayer” applies in that section

the term “indebtedness of the taxpayer” means any indebtedness— (A) for which the taxpayer is liable, or (B) subject to which the taxpayer holds property. (2) Title 11 case For purposes of this section,

“insolvent” applies in that section

the term “insolvent” means the excess of liabilities over the fair market value of assets. With respect to any discharge, whether or not the taxpayer is insolvent, and the amount by which the taxpayer is insolvent, shall be determined on the basis of the taxpayer’s assets and liabilities immediately before the discharge. [(4) Repealed. Pub. L. 99–514, title VIII, § 822(b)(3)(A) , Oct. 22, 1986 , 100 Stat. 2373 ] (5) Depreciable property

“principal residence” applies in that section

the term “principal residence” has the same meaning as when used in section 121. (i) Deferral and ratable inclusion of income arising from business indebtedness discharged by the reacquisition of a debt instrument (1) In general At the election of the taxpayer, income from the discharge of indebtedness in connection with the reacquisition after December 31, 2008 , and before January 1, 2011 , of an applicable debt instrument shall be includible in gross income ratably over the 5-taxable-year period beginning with— (A) in the case of a reacquisition occurring in 2009, the fifth taxable year following the taxable year in which the reacquisition occurs, and (B) in the case of a reacquisition …

“qualified acquisition indebtedness” applies in that section

the term “qualified acquisition indebtedness” means, with respect to any real property described in paragraph (3)(A), indebtedness incurred or assumed to acquire, construct, reconstruct, or substantially improve such property. (5) Regulations The Secretary shall issue such regulations as are necessary to carry out this subsection, including regulations preventing the abuse of this subsection through cross-collateralization or other means. (d) Meaning of terms; special rules relating to certain provisions (1) Indebtedness of taxpayer For purposes of this section,

“qualified person” applies in that section

the term “qualified person” has the meaning given to such term by section 49(a)(1)(D)(iv); except that such term shall include any Federal, State, or local government or agency or instrumentality thereof.

“qualified principal residence indebtedness” applies in that section

the term “qualified principal residence indebtedness” means acquisition indebtedness (within the meaning of section 163(h)(3)(B), applied by substituting “$750,000 ($375,000” for “$1,000,000 ($500,000” in clause (ii) thereof and determined without regard to the substitution described in section 163(h)(3)(F)(i)(II)) with respect to the principal residence of the taxpayer.

“qualified property” applies in that section

the term “qualified property” means any property which is used or is held for use in a trade or business or for the production of income. (D) Coordination with insolvency exclusion For purposes of this paragraph, the adjusted basis of any qualified property and the amount of the adjusted tax attributes shall be determined after any reduction under subsection (b) by reason of amounts excluded from gross income under subsection (a)(1)(B).

“qualified real property business indebtedness” applies in that section

The term “qualified real property business indebtedness” means indebtedness which— (A) was incurred or assumed by the taxpayer in connection with real property used in a trade or business and is secured by such real property, (B) was incurred or assumed before January 1, 1993 , or if incurred or assumed on or after such date, is qualified acquisition indebtedness, and (C) with respect to which such taxpayer makes an election to have this paragraph apply. Such term shall not include qualified farm indebtedness.

“reacquisition” applies in that section

The term “reacquisition” means, with respect to any applicable debt instrument, any acquisition of the debt instrument by— (i) the debtor which issued (or is otherwise the obligor under) the debt instrument, or (ii) a related person to such debtor. (B) Acquisition The term “acquisition” shall, with respect to any applicable debt instrument, include an acquisition of the debt instrument for cash, the exchange of the debt instrument for another debt instrument (including an exchange resulting from a modification of the debt instrument), the exchange of the debt instrument for corporate stock or a partnership interest, and the contribution of the debt instrument to capital.

“social security number” applies in that section

the term “social security number” has the meaning given such term in section 24(h)(7). (g) Special rules for discharge of qualified farm indebtedness (1) Discharge must be by qualified person (A) In general Subparagraph (C) of subsection (a)(1) shall apply only if the discharge is by a qualified person. (B) Qualified person For purposes of subparagraph (A),

“student loan” applies in that section

the term “student loan” means any loan to an individual to assist the individual in attending an educational organization described in section 170(b)(1)(A)(ii) made by— (A) the United States, or an instrumentality or agency thereof, (B) a State, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof, (C) a public benefit corporation— (i) which is exempt from taxation under section 501(c)(3), (ii) which has assumed control over a State, county, or municipal hospital, and (iii) whose employees have been deemed to be public employees under State law, or (D) any educational organization described in section 170(b)(1)(A)(ii) if such loan …

“title 11 case” applies in that section

the term “title 11 case” means a case under title 11 of the United States Code (relating to bankruptcy), but only if the taxpayer is under the jurisdiction of the court in such case and the discharge of indebtedness is granted by the court or is pursuant to a plan approved by the court. (3) Insolvent For purposes of this section,

“qualified long-term real property” applies in that section

The term “qualified long-term real property” means nonresidential real property which is part of, or otherwise present at, the retail space referred to in subsection (a) and which reverts to the lessor at the termination of the lease. (2) Short-term lease

“retail space” applies in that section

The term “retail space” means real property leased, occupied, or otherwise used by a lessee in its trade or business of selling tangible personal property or services to the general public. (d) Information required to be furnished to Secretary Under regulations, the lessee and lessor described in subsection (a) shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary— (1) information concerning the amounts received (or treated as a rent reduction) and expended as described in subsection (a), and (2) any other information which the Secretary deems necessary to carry out the provisions of this section.

“short-term lease” applies in that section

The term “short-term lease” means a lease (or other agreement for occupancy or use) of retail space for 15 years or less (as determined under the rules of section 168(i)(3)). (3) Retail space

“combat zone” applies in that section

The term “combat zone” means any area which the President of the United States by Executive Order designates, for purposes of this section or corresponding provisions of prior income tax laws, as an area in which Armed Forces of the United States are or have engaged in combat. (3) Service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combatant activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone. (4) The term “compensation” does not include pensions and retirement pay.;

“maximum enlisted amount” applies in that section

The term “maximum enlisted amount” means, for any month, the sum of— (A) the highest rate of basic pay payable for such month to any enlisted member of the Armed Forces of the United States at the highest pay grade applicable to enlisted members, and (B) in the case of an officer entitled to special pay under section 310, or paragraph (1) or (3) of section 351(a), of title 37, United States Code, for such month, the amount of such special pay payable to such officer for such month. (d) Prisoners of war, etc.

“highly compensated employee” applies in that section

the term “highly compensated employee” has the meaning given such term by section 414(q). [(4) Repealed. Pub. L. 101–140, title II, § 203(a)(1) , (2), Nov. 8, 1989 , 103 Stat. 830 ] (5) Special rules for teaching and research assistants In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such organization, paragraph (2) shall be applied as if it did not contain the phrase “(below the graduate level)”.

“qualified scholarship” applies in that section

The term “qualified scholarship” means any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses. (2) Qualified tuition and related expenses For purposes of paragraph (1),

“qualified tuition and related expenses” applies in that section

the term “qualified tuition and related expenses” means— (A) tuition and fees required for the enrollment or attendance of a student at an educational organization described in section 170(b)(1)(A)(ii), and (B) fees, books, supplies, and equipment required for courses of instruction at such an educational organization. (c) Limitation (1) In general Except as provided in paragraph (2), subsections (a) and (d) shall not apply to that portion of any amount received which represents payment for teaching, research, or other services by the student required as a condition for receiving the qualified scholarship or qualified tuition reduction.

“qualified tuition reduction” applies in that section

the term “qualified tuition reduction” means the amount of any reduction in tuition provided to an employee of an organization described in section 170(b)(1)(A)(ii) for the education (below the graduate level) at such organization (or another organization described in section 170(b)(1)(A)(ii)) of— (A) such employee, or (B) any person treated as an employee (or whose use is treated as an employee use) under the rules of section 132(h). (3) Reduction must not discriminate in favor of highly compensated, etc.

“contribution to the capital of the taxpayer” applies in that section

the term “contribution to the capital of the taxpayer” includes any amount of money or other property received from any person (whether or not a shareholder) by a regulated public utility which provides water or sewerage disposal services if— (A) such amount is— (i) a contribution in aid of construction, or (ii) a contribution to the capital of such utility by a governmental entity providing for the protection, preservation, or enhancement of drinking water or sewerage disposal services, (B) in the case of a contribution in aid of construction which is property other than water or sewerage disposal facilities, such amount meets the requirements of the expenditure rule of paragraph (2), and …

“predominantly” applies in that section

The term “predominantly” means 80 percent or more. (C) Regulated public utility

“regulated public utility” applies in that section

The term “regulated public utility” has the meaning given such term by section 7701(a)(33), except that such term shall not include any utility which is not required to provide water or sewerage disposal services to members of the general public in its service area. (4) Disallowance of deductions and credits; adjusted basis Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure which constitutes a contribution in aid of construction to which this subsection applies. The adjusted basis of any property acquired with contributions in aid of construction to which this subsection applies shall be zero.

“academic health center” applies in that section

the term “academic health center” means an entity— (i) which is described in section 170(b)(1)(A)(iii), (ii) which receives (during the calendar year in which the taxable year of the taxpayer begins) payments under subsection (d)(5)(B) or (h) of section 1886 of the Social Security Act (relating to graduate medical education), and (iii) which has as one of its principal purposes or functions the providing and teaching of basic and clinical medical science and research with the entity’s own faculty.

“educational institution” applies in that section

The term “educational institution” means— (i) an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or (ii) an academic health center. (B) Academic health center For purposes of subparagraph (A),

“qualified campus lodging” applies in that section

the term “qualified campus lodging” means lodging to which subsection (a) does not apply and which is— (A) located on, or in the proximity of, a campus of the educational institution, and (B) furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence. (4) Educational institution, etc. For purposes of this subsection— (A) In general

“divorce or separation instrument” applies in that section

the term “divorce or separation instrument” means— (i) a decree of divorce or separate maintenance or a written instrument incident to such a decree, (ii) a written separation agreement, or (iii) a decree (not described in clause (i)) requiring a spouse to make payments for the support or maintenance of the other spouse.

“employee of the intelligence community” applies in that section

The term “employee of the intelligence community” means an employee (as defined by section 2105 of title 5 , United States Code) of— (I) the Office of the Director of National Intelligence, (II) the Central Intelligence Agency, (III) the National Security Agency, (IV) the Defense Intelligence Agency, (V) the National Geospatial-Intelligence Agency, (VI) the National Reconnaissance Office, (VII) any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs, (VIII) any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, …

“extended duty” applies in that section

The term “extended duty” means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. (D) Special rules relating to election (i) Election limited to 1 property at a time An election under subparagraph (A) with respect to any property may not be made if such an election is in effect with respect to any other property. (ii) Revocation of election An election under subparagraph (A) may be revoked at any time.

“member of the Foreign Service of the United States” applies in that section

The term “member of the Foreign Service of the United States” has the meaning given the term “member of the Service” by paragraph (1), (2), (3), (4), or (5) of section 103 of the Foreign Service Act of 1980, as in effect on the date of the enactment of this paragraph. (iv) Employee of intelligence community

“period of nonqualified use” applies in that section

The term “period of nonqualified use” means any period (other than the portion of any period preceding January 1, 2009 ) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse.

“qualified official extended duty” applies in that section

The term “qualified official extended duty” means any extended duty while serving at a duty station which is at least 50 miles from such property or while residing under Government orders in Government quarters. (ii) Uniformed services

“uniformed services” applies in that section

The term “uniformed services” has the meaning given such term by section 101(a)(5) of title 10 , United States Code, as in effect on the date of the enactment of this paragraph. (iii) Foreign Service of the United States

“consideration for the contract” applies in that section

the term “consideration for the contract” means, in respect of any individual, the sum of— (A) the total amount of the reductions before January 1, 1966 , in his retired or retainer pay by reason of an election under chapter 73 of title 10 of the United States Code, and (B) any amounts deposited at any time by him pursuant to section 1438 or 1452(d) of such title 10.

“applicable nondiscrimination requirement” applies in that section

the term “applicable nondiscrimination requirement” means any requirement under subsection (b) of this section, section 79(d), section 105(h), or paragraph (2), (3), (4), or (8) of section 129(d). (7) Compensation

“cafeteria plan” applies in that section

The term “cafeteria plan” means a written plan under which— (A) all participants are employees, and (B) the participants may choose among 2 or more benefits consisting of cash and qualified benefits. (2) Deferred compensation plans excluded (A) In general The term “cafeteria plan” does not include any plan which provides for deferred compensation.

“compensation” applies in that section

The term “compensation” has the meaning given such term by section 414(s). (k) Cross reference For reporting and recordkeeping requirements, see section 6039D. (l) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section.

“eligible employer” applies in that section

The term “eligible employer” means, with respect to any year, any employer if such employer employed an average of 100 or fewer employees on business days during either of the 2 preceding years. For purposes of this subparagraph, a year may only be taken into account if the employer was in existence throughout the year. (B) Employers not in existence during preceding year If an employer was not in existence throughout the preceding year, the determination under subparagraph (A) shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current year.

“highly compensated employee” applies in that section

The term “highly compensated employee” has the meaning given such term by section 414(q). (iv) Key employee

“highly compensated individual” applies in that section

The term “highly compensated individual” means an individual who is described in subparagraph (A), (B), (C), or (D) of paragraph (1). (f) Qualified benefits defined For purposes of this section— (1) In general

“highly compensated participant” applies in that section

The term “highly compensated participant” means a participant who is— (A) an officer, (B) a shareholder owning more than 5 percent of the voting power or value of all classes of stock of the employer, (C) highly compensated, or (D) a spouse or dependent (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of an individual described in subparagraph (A), (B), or (C). (2) Highly compensated individual

“key employee” applies in that section

The term “key employee” has the meaning given such term by section 416(i). (4) Minimum eligibility and participation requirements (A) In general The requirements of this paragraph shall be treated as met with respect to any year if, under the plan— (i) all employees who had at least 1,000 hours of service for the preceding plan year are eligible to participate, and (ii) each employee eligible to participate in the plan may, subject to terms and conditions applicable to all participants, elect any benefit available under the plan.

“qualified benefit” applies in that section

The term “qualified benefit” means any benefit which, with the application of subsection (a), is not includible in the gross income of the employee by reason of an express provision of this chapter (other than section 106(b), 117, 127, or 132). Such term includes any group term life insurance which is includible in gross income only because it exceeds the dollar limitation of section 79 and such term includes any other benefit permitted under regulations. (2) Long-term care insurance not qualified The term “qualified benefit” shall not include any product which is advertised, marketed, or offered as long-term care insurance.

“qualified employee” applies in that section

The term “qualified employee” means, with respect to a cafeteria plan, any employee who is not a highly compensated or key employee and who is eligible to participate in the plan. (iii) Highly compensated employee