Browse Arkansas Code titles and sections
26-51-423. Deductions — Expenses.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-423. Deductions — Expenses.
(a) In computing net income, there shall be allowed as deductions the following expenses:
(1) Business Expenses. All of 26 U.S.C. § 162, except subsection (n), as in effect on January 1, 2019, regarding trade or business expenses, is adopted for the purpose of computing Arkansas income tax liability;
(2) Medical and Dental Expenses. Title 26 U.S.C. § 213, as in effect on January 1, 2011, is adopted in computing the medical and dental expense deduction under the state income tax law;
(3) Travel Expenses. In determining travel expenses deductible as a business expense in computing net income as provided under subdivision (a)(1) of this section, the deduction for vehicle miles shall be determined by the Secretary of the Department of Finance and Administration under his or her regulatory authority in § 26-18-301; and
(4) Moving Expenses. Title 26 U.S.C. § 217, as in effect on January 1, 2011, regarding the deduction of moving expenses, is adopted for the purpose of computing Arkansas income tax liability.
(b) Title 26 U.S.C. § 274, as in effect on January 1, 2019, regarding the deduction of expenses for entertainment, amusement, recreation, business meals, travel, et cetera, is adopted for the purpose of computing Arkansas income tax liability.
(c)(1) An individual who is self-employed shall be allowed a deduction equal to the applicable percentage as set forth in 26 U.S.C. § 162(l)(1)(B) as in effect on January 1, 1999, of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his or her spouse, and his or her dependents.
(2)(A) No deduction shall be allowed under this subsection to the extent that the amount of the deduction exceeds the taxpayer's earned income deriv
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-423
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
Issuing source page ↗
Authority boundary: historical statutory source snapshot not current law.
Open the recorded source website ↗
Record provenance
Stable record: arkansas_code:legal_authorities:26-51-423
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: ffc6bca1e84a8c53cf97c260d4f08fa031b0f692de39410cb5061338d5ce4b1d
Source location: content.xml paragraph 12653
Stored source content
26-51-423. Deductions — Expenses.
(a) In computing net income, there shall be allowed as deductions the following expenses:
(1) Business Expenses. All of 26 U.S.C. § 162, except subsection (n), as in effect on January 1, 2019, regarding trade or business expenses, is adopted for the purpose of computing Arkansas income tax liability;
(2) Medical and Dental Expenses. Title 26 U.S.C. § 213, as in effect on January 1, 2011, is adopted in computing the medical and dental expense deduction under the state income tax law;
(3) Travel Expenses. In determining travel expenses deductible as a business expense in computing net income as provided under subdivision (a)(1) of this section, the deduction for vehicle miles shall be determined by the Secretary of the Department of Finance and Administration under his or her regulatory authority in § 26-18-301; and
(4) Moving Expenses. Title 26 U.S.C. § 217, as in effect on January 1, 2011, regarding the deduction of moving expenses, is adopted for the purpose of computing Arkansas income tax liability.
(b) Title 26 U.S.C. § 274, as in effect on January 1, 2019, regarding the deduction of expenses for entertainment, amusement, recreation, business meals, travel, et cetera, is adopted for the purpose of computing Arkansas income tax liability.
(c)(1) An individual who is self-employed shall be allowed a deduction equal to the applicable percentage as set forth in 26 U.S.C. § 162(l)(1)(B) as in effect on January 1, 1999, of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his or her spouse, and his or her dependents.
(2)(A) No deduction shall be allowed under this subsection to the extent that the amount of the deduction exceeds the taxpayer's earned income derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established.
(B) This subsection shall not apply to any taxpayer who is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or the spouse of the taxpayer.
(3) Any amount paid by the taxpayer for insurance to which this subsection applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under subdivision (a)(2) of this section.
(d) Title 26 U.S.C. § 221, as in effect on January 2, 2013, regarding the deduction of interest paid on qualified education loans, is adopted for the purpose of computing Arkansas income tax liability.
(e) Title 26 U.S.C. § 198, as in effect on January 1, 2011, regarding the deduction of costs paid or incurred for the cleanup of certain hazardous substances, is adopted for the purpose of computing Arkansas income tax liability.
(f) Title 26 U.S.C. § 190, as in effect on January 1, 2001, regarding the deduction of costs paid or incurred to improve access to vehicles and facilities for handicapped and elderly persons, is adopted for the purpose of computing Arkansas income tax liability.
(g)(1) A deduction pursuant to subdivision (a)(1) of this section for interest or intangible-related expenses paid by the taxpayer to a related party shall be allowed only if:
(A) The interest or intangible-related income received by the related party is subject to income tax imposed by the State of Arkansas, another state, or a foreign government that has entered into a comprehensive income tax treaty with the United States;
(B) The interest or intangible-related income received by the related party was received pursuant to:
(i) An “arm's length” contract or at an “arm's length” rate of interest; and
(ii) A transaction not intended to avoid the payment of Arkansas income tax otherwise due;
(C) The taxpayer and the secretary enter into a written agreement prior to the due date of the taxpayer's Arkansas income tax return:
(i) Authorizing the taxpayer to take the deduction for the tax year at issue; or
(ii) Requiring the use of an alternative method of income apportionment by the taxpayer for the tax year at issue; or
(D) During the taxable year, the related party recipient of interest or intangible related income, in a location not described in subdivision (g)(1)(A) of this section, a “non-tax location”:
(i) Operates an active trade or business in the non-tax location;
(ii) Has a minimum of fifty (50) full-time-equivalent employees in the non-tax location;
(iii) Owns real or tangible personal property with a fair market value in excess of one million dollars ($1,000,000) located in the non-tax location; and
(iv) Has revenues generated from sources within the non-tax location in excess of one million dollars ($1,000,000).
(2) “Related party” means a related party as defined by 26 U.S.C. § 267, as in effect on January 1, 2003.
(h) Title 26 U.S.C. § 194, as in effect on January 1, 2007, regarding the amortization of qualified reforestation expenses, is adopted for the purpose of computing Arkansas income tax liability.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including—
(1) a reasonable allowance for salaries or other compensation for personal services actually rendered;
(2) traveling expenses (including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances) while away from home in the pursuit of a trade or business; and
(3) rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity.
For purposes of the preceding sentence, the place of residence of a Member of Congress (including any Delegate and Resident Commissioner) within the State, congressional district, or possession which he represents in Congress shall be considered his home, but amounts expended by such Members within each taxable year for living expenses shall not be deductible for income tax purposes. For purposes of paragraph (2), the taxpayer shall not be treated as being temporarily away from home during any period of employment if such period exceeds 1 year. The preceding sentence shall not apply to any Federal employee during any period for which such employee is certified by the Attorney General (or the designee thereof) as traveling on behalf of the United States in temporary duty status to investigate or prosecute, or provide support services for the investigation or prosecution of, a Federal crime.
**(b) Charitable contributions and gifts excepted** No deduction shall be allowed under subsection (a) for any contribution or gift which would be al
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 162
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 162. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 725
TITLE 26—INTERNAL REVENUE CODE
§ 162
1992—Pub. L. 102–486, title XIX, § 1913(a)(3)(B), Oct. 24,
1992, 106 Stat. 3019, added item 179A.
1990—Pub. L. 101–508, title XI, § 11801(b)(3), Nov. 5,
1990, 104 Stat. 1388–522, struck out item 184 ‘‘Amortiza-
tion of certain railroad rolling stock’’ and item 188
‘‘Amortization of certain expenditures for child care fa-
cilities’’.
1986—Pub. L. 99–514, title II, §§ 201(d)(2)(B), 241(b)(3),
242(b)(3), title IV, § 402(b)(3), title VIII, § 803(c)(2), Oct.
22, 1986, 100 Stat. 2139, 2181, 2221, 2356, substituted ‘‘Am-
ortization of cost of acquiring a lease’’ for ‘‘Deprecia-
tion or amortization of improvements made by lessee
on lessor’s property’’ in item 178, and struck out items
177 ‘‘Trademark and trade name expenditures’’, 182
‘‘Expenditures by farmers for clearing land’’, 185 ‘‘Am-
ortization of railroad grading and tunnel bores’’, and
189 ‘‘Amortization of real property construction period
interest and taxes’’.
1984—Pub. L. 98–369, div. A, title I, § 94(b), title IV,
§ 474(r)(8)(B), July 18, 1984, 98 Stat. 615, 841, reenacted
item 195 without change, and substituted ‘‘business
credits’’ for ‘‘investment credits’’ in item 196.
1983—Pub. L. 97–448, title III, § 305(b)(2), Jan. 12, 1983,
96 Stat. 2399, redesignated item 194 (relating to con-
tributions to employer liability trusts) as 194A.
1982—Pub. L. 97–248, title II, § 205(a)(5)(C), Sept. 3,
1982, 96 Stat. 430, added item 196.
1981—Pub. L. 97–34, title II, §§ 201(d), 202(d)(3), Aug. 13,
1981, 95 Stat. 219, 221, added item 168 and substituted
‘‘Election to expense certain depreciable business as-
sets’’ for ‘‘Additional first-year depreciation allowance
for small business’’ in item 179.
1980—Pub. L. 96–605, title I, § 102(b), Dec. 28, 1980, 94
St
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 162
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 162. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment as expenses**
(1) **In general** — A taxpayer may elect to treat qualified architectural and transportation barrier removal expenses which are paid or incurred by him during the taxable year as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction.
(2) **Election** — An election under paragraph (1) shall be made at such time and in such manner as the Secretary prescribes by regulations.
**(b) Definitions** For purposes of this section—
(1) **Architectural and transportation barrier removal expenses** — The term “architectural and transportation barrier removal expenses” means an expenditure for the purpose of making any facility or public transportation vehicle owned or leased by the taxpayer for use in connection with his trade or business more accessible to, and usable by, handicapped and elderly individuals.
(2) **Qualified architectural and transportation barrier removal expenses** — The term “qualified architectural and transportation barrier removal expense” means, with respect to any such facility or public transportation vehicle, an architectural or transportation barrier removal expense with respect to which the taxpayer establishes, to the satisfaction of the Secretary, that the resulting removal of any such barrier meets the standards promulgated by the Secretary with the concurrence of the Architectural and Transportation Barriers Compliance Board and set forth in regulations prescribed by the Secretary.
(3) **Handicapped individual** — The term “handicapped individual” means any individual who has a physical or mental disability (including, but not limited to, blindness or deafness) which for such individual constitutes or results in a functional limitation to employment, or w
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 190
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 190. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 915
TITLE 26—INTERNAL REVENUE CODE
§ 190
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Repeal effective for taxable years beginning after
Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set
out as an Effective Date of 1976 Amendment note under
section 2 of this title.
[§ 188.
Repealed.
Pub.
L.
101–508,
title
XI,
§ 11801(a)(13),
Nov.
5,
1990,
104
Stat.
1388–520]
Section, added Pub. L. 92–178, title III, § 303(a), Dec.
10, 1971, 85 Stat. 521; amended Pub. L. 94–455, title XIX,
§ 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–30,
title IV, § 402(a)(1)–(3), May 23, 1977, 91 Stat. 155, related
to amortization of certain expenditures for child care
facilities.
Statutory Notes and Related Subsidiaries
SAVINGS PROVISION
For provisions that nothing in repeal 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 liabil-
ity for tax for periods ending after Nov. 5, 1990, see sec-
tion 11821(b) of Pub. L. 101–508, set out as a note under
section 45K of this title.
[§ 189. Repealed. Pub. L. 99–514, title VIII,
§ 803(b)(1), Oct. 22, 1986, 100 Stat. 2355]
Section, added Pub. L. 94–455, title II, § 201(a), Oct. 4,
1976, 90 Stat. 1525; amended Pub. L. 95–600, title VII,
§ 701(m)(1), Nov. 6, 1978, 92 Stat. 2907; Pub. L. 97–34, title
II, § 262(a), (b), Aug. 13, 1981, 95 Stat. 264; Pub. L. 97–248,
title II, § 207(a)–(d), Sept. 3, 1982, 96 Stat. 431, 432; Pub.
L. 97–354, § 5(a)(24), Oct. 19, 1982, 96 Stat. 1694; Pub. L.
98–369, div. A, title I, § 93(a), title VII, § 712(c), July 18,
1984, 98 Stat. 614, 947, related to amortization of real
prop
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 190
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 190. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** A taxpayer may elect to treat any qualified environmental remediation expenditure which is paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expenditure which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred.
**(b) Qualified environmental remediation expenditure** For purposes of this section—
(1) **In general** — The term “qualified environmental remediation expenditure” means any expenditure—
(A) which is otherwise chargeable to capital account, and
(B) which is paid or incurred in connection with the abatement or control of hazardous substances at a qualified contaminated site.
(2) **Special rule for expenditures for depreciable property** — Such term shall not include any expenditure for the acquisition of property of a character subject to the allowance for depreciation which is used in connection with the abatement or control of hazardous substances at a qualified contaminated site; except that the portion of the allowance under section 167 for such property which is otherwise allocated to such site shall be treated as a qualified environmental remediation expenditure.
**(c) Qualified contaminated site** For purposes of this section—
(1) **In general** — The term “qualified contaminated site” means any area—
(A) which is held by the taxpayer for use in a trade or business or for the production of income, or which is property described in section 1221(a)(1) in the hands of the taxpayer, and
(B) at or on which there has been a release (or threat of release) or disposal of any hazardous substance.
(2) **National priorities listed sites not included** — Such term shall not include any site which is on, or proposed for, the national priori
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 198
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 198. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 927
TITLE 26—INTERNAL REVENUE CODE
§ 198
of this section, including such regulations as
may be appropriate to prevent avoidance of the
purposes of this section through related persons
or otherwise.
(Added Pub. L. 103–66, title XIII, § 13261(a), Aug.
10, 1993, 107 Stat. 532; amended Pub. L. 108–357,
title VIII, §§ 847(b)(3), 886(a), Oct. 22, 2004, 118
Stat. 1602, 1641.)
Editorial Notes
REFERENCES IN TEXT
The date of the enactment of this section, referred to
in subsecs. (c)(1)(A) and (f)(9)(A), (F), is the date of en-
actment of Pub. L. 103–66, which was approved Aug. 10,
1993.
AMENDMENTS
2004—Subsec. (e)(6) to (8). Pub. L. 108–357, § 886(a), re-
designated pars. (7) and (8) as (6) and (7), respectively,
and struck out heading and text of former par. (6). Text
read as follows: ‘‘A franchise to engage in professional
football, basketball, baseball, or other professional
sport, and any item acquired in connection with such a
franchise.’’
Subsec. (f)(10). Pub. L. 108–357, § 847(b)(3), added par.
(10).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by section 847(b)(3) of Pub. L. 108–357 ap-
plicable to leases entered into after Oct. 3, 2004, see sec-
tion 849(b)(4) of Pub. L. 108–357, set out as an Effective
Date note under section 470 of this title.
Pub. L. 108–357, title VIII, § 886(c), Oct. 22, 2004, 118
Stat. 1641, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section [amending this
section and sections 1245 and 1253 of this title and re-
pealing section 1056 of this title] shall apply to prop-
erty acquired after the date of the enactment of this
Act [Oct. 22, 2004].
‘‘(2) SECTION
1245.—The amendment made by sub-
section (b)(2) [amending section 12
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 198
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 198. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of deduction** There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), to the extent that such expenses exceed 7.5 percent of adjusted gross income.
**(b) Limitation with respect to medicine and drugs** An amount paid during the taxable year for medicine or a drug shall be taken into account under subsection (a) only if such medicine or drug is a prescribed drug or is insulin.
**(c) Special rule for decedents**
(1) **Treatment of expenses paid after death** — For purposes of subsection (a), expenses for the medical care of the taxpayer which are paid out of his estate during the 1-year period beginning with the day after the date of his death shall be treated as paid by the taxpayer at the time incurred.
(2) **Limitation** — Paragraph (1) shall not apply if the amount paid is allowable under section 2053 as a deduction in computing the taxable estate of the decedent, but this paragraph shall not apply if (within the time and in the manner and form prescribed by the Secretary) there is filed—
(A) a statement that such amount has not been allowed as a deduction under section 2053, and
(B) a waiver of the right to have such amount allowed at any time as a deduction under section 2053.
**(d) Definitions** For purposes of this section—
(1) The term “medical care” means amounts paid—
(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,
(B) for transportation primarily for and essential to medical care referred
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 213
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 213. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 937
TITLE 26—INTERNAL REVENUE CODE
§ 213
1962—Pub. L. 87–834, § 28(b), Oct. 16, 1962, 76 Stat. 1068,
substituted ‘‘Deduction of taxes, interest, and business
depreciation by cooperative housing corporation ten-
ant-stockholder’’ for ‘‘Amounts representing taxes and
interest paid to cooperative housing corporation’’ in
item 216.
§ 211. Allowance of deductions
In computing taxable income under section 63,
there shall be allowed as deductions the items
specified in this part, subject to the exceptions
provided in part IX (section 261 and following,
relating to items not deductible).
(Aug. 16, 1954, ch. 736, 68A Stat. 69; Pub. L. 95–30,
title I, § 102(b)(3), May 23, 1977, 91 Stat. 137.)
Editorial Notes
AMENDMENTS
1977—Pub. L. 95–30 substituted ‘‘section 63’’ for ‘‘sec-
tion 63(a)’’.
Statutory Notes and Related Subsidiaries
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.
§ 212. Expenses for production of income
In the case of an individual, there shall be al-
lowed as a deduction all the ordinary and nec-
essary expenses paid or incurred during the tax-
able year—
(1) for the production or collection of in-
come;
(2) for the management, conservation, or
maintenance of property held for the produc-
tion of income; or
(3) in connection with the determination,
collection, or refund of any tax.
(Aug. 16, 1954, ch. 736, 68A Stat. 69.)
Statutory Notes and Related Subsidiaries
DENIAL
OF
DEDUCTION
FOR
AMOUNTS
PAID
OR
IN-
CURRED
ON JUDGMENTS
IN SUITS BROUGHT TO RE-
COVER PRICE INCREASES IN PURCHASE OF NEW PRIN-
CIPAL RESIDENCE
No deductions to be allowed in computing taxable in-
come for two-third
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 213
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 213. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Deduction allowed** There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work.
**(b) Definition of moving expenses**
(1) **In general** — For purposes of this section, the term “moving expenses” means only the reasonable expenses—
(A) of moving household goods and personal effects from the former residence to the new residence, and
(B) of traveling (including lodging) from the former residence to the new place of residence.
Such term shall not include any expenses for meals.
(2) **Individuals other than taxpayer** — In the case of any individual other than the taxpayer, expenses referred to in paragraph (1) shall be taken into account only if such individual has both the former residence and the new residence as his principal place of abode and is a member of the taxpayer’s household.
**(c) Conditions for allowance** No deduction shall be allowed under this section unless—
(1) the taxpayer’s new principal place of work—
(A) is at least 50 miles farther from his former residence than was his former principal place of work, or
(B) if he had no former principal place of work, is at least 50 miles from his former residence, and
(2) either—
(A) during the 12-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee, in such general location, during at least 39 weeks, or
(B) during the 24-month period immediately following his arrival in the general location of his new principal place of work, the taxpayer is a full-time employee or performs services as a self-employed individual on a
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 217
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 217. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 945
TITLE 26—INTERNAL REVENUE CODE
§ 217
‘‘(B) NO INFERENCE.—Nothing in the provisions of
this paragraph shall be construed to infer that a
change in law is intended with respect to the treat-
ment of deductions under section 277 of the Internal
Revenue Code of 1954 [now 1986] with respect to coop-
erative housing corporations, and any determination
of such issue shall be made as if such provisions had
not been enacted.
‘‘(3) TREATMENT OF CERTAIN INTEREST CLAIMED AS DE-
DUCTION.—Any amount—
‘‘(A) claimed (on a return of tax imposed by chapter
1 of the Internal Revenue Code of 1954 [now 1986]) as
a deduction by a qualified cooperative housing cor-
poration for interest for any taxable year beginning
before January 1, 1986, on a second mortgage loan
made by a city housing development agency or cor-
poration in connection with a qualified refinancing,
and
‘‘(B) reported (before April 16, 1986) by the qualified
cooperative housing corporation to its tenant-stock-
holders as interest described in section 216(a)(2) of
such Code,
shall be treated for purposes of such Code as if such
amount were paid by such qualified cooperative hous-
ing corporation during such taxable year.
‘‘(4) QUALIFIED COOPERATIVE HOUSING CORPORATION.—
‘‘(A) IN GENERAL.—For purposes of this subsection,
the term ‘qualified cooperative housing corporation’
means any corporation if—
‘‘(i) such corporation is, after the application of
paragraphs (1) and (2), a cooperative housing cor-
poration (as defined in section 216(b) of the Internal
Revenue Code of 1954 [now 1986]),
‘‘(ii) such corporation is subject to a qualified
limited-profit housing companies law, and
‘‘(iii) such corporation either—
‘‘(I) filed for incorporation on July 22, 1965, or
‘‘(II) filed for incorporation on
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 217
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 217. This identifies an authority to review, not proof of applicability.