26 U.S.C. § 212 — Expenses for production of income

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-thirds of any amount paid or incurred on a judgment entered against any person in a suit brought under section 208(b) of Pub. L. 94–12, see sec- tion 208(c) of Pub. L. 94–12, set out as a note under sec- tion 44 of this title. § 213. Medical, dental, etc., expenses (a) Allowance of deduction There shall be allowed as a deduction the ex- penses paid during the taxable year, not com- pensated for by insurance or otherwise, for med- ical care of the taxpayer, his spouse, or a de- pendent (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof), to the extent that such ex- penses exceed 7.5 percent of adjusted gross in- come. (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 deduc- tion in computing the taxable estate of the de- cedent, 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 es- sential to medical care referred to in sub- paragraph (A), (C) for qualified long-term care services (as defined in section 7702B(c)), or (D) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supple- mentary medical insurance for the aged) covering medical care referred to in subpara- graphs (A) and (B) or for any qualified long- term care insurance contract (as defined in section 7702B(b)). In the case of a qualified long-term care insur- ance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as de- fined in paragraph (10)) shall be taken into ac- count under subparagraph (D). (2) AMOUNTS PAID FOR CERTAIN LODGING AWAY FROM HOME TREATED AS PAID FOR MEDICAL CARE.—Amounts paid for lodging (not lavish or extravagant under the circumstances) while away from home primarily for and essential to medical care referred to in paragraph (1)(A) shall be treated as amounts paid for medical care if— (A) the medical care referred to in para- graph (1)(A) is provided by a physician in a licensed hospital (or in a medical care facil- ity which is related to, or the equivalent of, a licensed hospital), and (B) there is no significant element of per- sonal pleasure, recreation, or vacation in the travel away from home. The amount taken into account under the pre- ceding sentence shall not exceed $50 for each night for each individual.