26 U.S.C. § 272 — Disposal of coal or domestic iron ore

Page 1030 TITLE 26—INTERNAL REVENUE CODE § 272 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–455, title XXI, § 2104(b), Oct. 4, 1976, 90 Stat. 1902, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply to tax- able years beginning after December 31, 1975.’’ § 272. Disposal of coal or domestic iron ore Where the disposal of coal or iron ore is cov- ered by section 631, no deduction shall be al- lowed for expenditures attributable to the mak- ing and administering of the contract under which such disposition occurs and to the preser- vation of the economic interest retained under such contract, except that if in any taxable year such expenditures plus the adjusted depletion basis of the coal or iron ore disposed of in such taxable year exceed the amount realized under such contract, such excess, to the extent not availed of as a reduction of gain under section 1231, shall be a loss deductible under section 165(a). This section shall not apply to any tax- able year during which there is no income under the contract. (Aug. 16, 1954, ch. 736, 68A Stat. 82; Pub. L. 88–272, title II, § 227(a)(3), (b)(3), Feb. 26, 1964, 78 Stat. 98.) Editorial Notes AMENDMENTS 1964—Pub. L. 88–272 inserted ‘‘or domestic iron ore’’ in section catchline, and ‘‘or iron ore’’ wherever appearing in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–272, title II, § 227(c), Feb. 26, 1964, 78 Stat. 98, provided that: ‘‘The amendments made by this sec- tion [amending this section and sections 631, 1016, 1231, and 1402 and section 411 of Title 42, The Public Health and Welfare] shall apply with respect to amounts re- ceived or accrued in taxable years beginning after De- cember 31, 1963, attributable to iron ore mined in such taxable years.’’ § 273. Holders of life or terminable interest Amounts paid under the laws of a State, the District of Columbia, a possession of the United States, or a foreign country as income to the holder of a life or terminable interest acquired by gift, bequest, or inheritance shall not be re- duced or diminished by any deduction for shrinkage (by whatever name called) in the value of such interest due to the lapse of time. (Aug. 16, 1954, ch. 736, 68A Stat. 83; Pub. L. 94–455, title XIX, § 1901(c)(2), Oct. 4, 1976, 90 Stat. 1803.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out reference to amounts paid under laws of a Territory. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. § 274. Disallowance of certain entertainment, etc., expenses (a) Entertainment, amusement, recreation, or qualified transportation fringes (1) In general No deduction otherwise allowable under this chapter shall be allowed for any item— (A) Activity With respect to an activity which is of a type generally considered to constitute en- tertainment, amusement, or recreation, or (B) Facility With respect to a facility used in connec- tion with an activity referred to in subpara- graph (A). (2) Special rules For purposes of applying paragraph (1)— (A) Dues or fees to any social, athletic, or sporting club or organization shall be treat- ed as items with respect to facilities. (B) An activity described in section 212 shall be treated as a trade or business. (3) Denial of deduction for club dues Notwithstanding the preceding provisions of this subsection, no deduction shall be allowed under this chapter for amounts paid or in- curred for membership in any club organized for business, pleasure, recreation, or other so- cial purpose. (4) Qualified transportation fringes No deduction shall be allowed under this chapter for the expense of any qualified trans- portation fringe (as defined in section 132(f)) provided to an employee of the taxpayer. (b) Gifts (1) Limitation No deduction shall be allowed under section 162 or section 212 for any expense for gifts made directly or indirectly to any individual to the extent that such expense, when added to prior expenses of the taxpayer for gifts made to such individual during the same taxable year, exceeds $25. For purposes of this section, the term ‘‘gift’’ means any item excludable from gross income of the recipient under sec- tion 102 which is not excludable from his gross income under any other provision of this chap- ter, but such term does not include— (A) an item having a cost to the taxpayer not in excess of $4.00 on which the name of the taxpayer is clearly and permanently im- printed and which is one of a number of iden- tical items distributed generally by the tax- payer, or (B) a sign, display rack, or other pro- motional material to be used on the business premises of the recipient. (2) Special rules (A) In the case of a gift by a partnership, the limitation contained in paragraph (1) shall apply to the partnership as well as to each member thereof. (B) For purposes of paragraph (1), a hus- band and wife shall be treated as one tax- payer.