Appendix 1 Selected Internal Revenue Code

UNITED STATES CODE

TITLE 26: INTERNAL REVENUE CODE

SUBTITLE A — INCOME TAXES (SECTIONS 1 TO 1564)

Chapter 1 — Normal taxes and surtaxes (Sections 1 to 1400Z-2)

SUBCHAPTER A — DETERMINATION OF TAX LIABILITY (SECTIONS 1 TO 59B) PART I — TAX ON INDIVIDUALS

Sec. 1. Tax Imposed

Sec. 2. Definitions And Special Rules

Sec. 3. Tax Tables For Individuals

Sec. 5. Cross References Relating To Tax On Individuals

Part II — Tax on corporations (Sections 11 to 12)

Sec. 11. Tax Imposed

Sec. 12. Cross References Relating To Tax On Corporations

Part III — Changes in rates during a taxable year (Section 15)

Sec. 15. Effect Of Changes

Part IV — Credits Against Tax (Sections 21 to 54AA)

Subpart A — Nonrefundable Personal Credits (Sections 21 to 26)

Sec. 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment

Sec. 22. Credit For The Elderly And The Permanently And Totally Disabled

Sec. 23. Adoption Expenses Sec. 24. Child Tax Credit

Sec. 25. Interest On Certain Home Mortgages

Sec. 25A. American Opportunity And Lifetime Learning Credits

Sec. 25B. Elective Deferrals And IRA Contributions By Certain Individuals Sec. 25C. Nonbusiness Energy Property

Sec. 25D. Residential Energy Efficient Property

Sec. 26. Limitation Based On Tax Liability; Definition Of Tax Liability

Subpart B — Other Credits (Sections 27 to 30D)

Sec. 27. Taxes Of Foreign Countries And Possessions Of The United States Sec.

29. Credit For Producing Fuel From A Nonconventional Source

Sec. 30. Certain Plug-In Electric Vehicles [Repealed]

Sec. 30A. Puerto Rico Economic Activity Credit [Repealed]

Sec. 30B. Alternative Motor Vehicle Credit

Sec. 30C. Alternative Fuel Vehicle Refueling Property Credit Sec. 30D. New Qualified Plug-In Electric Drive Motor Vehicles

Subpart C — Refundable Credits (Sections 31 to 37)

Sec. 31. Tax Withheld On Wages Sec. 32. Earned Income

Sec. 33. Tax Withheld At Source On Nonresident Aliens And Foreign Corporations Sec. 34. Certain Uses Of Gasoline And Special Fuels

Sec. 35. Health Insurance Costs Of Eligible Individuals

Sec. 36A. Making Work Pay Credit [Repealed]

Sec. 36B. Refundable Credit For Coverage Under A Qualified Health Plan Sec. 36C. Adoption Expenses

Sec. 37. Overpayments Of Tax

Subpart D — Business Related Credits (Sections 38 to 45T)

Sec. 38. General Business Credit

Sec. 39. Carryback And Carryforward Of Unused Credits Sec. 40. Alcohol, Etc. Used As Fuel

Sec. 40A. Biodiesel And Renewable Diesel Used As Fuel Sec. 41. Credit For Increasing Research Activities

Sec. 42. Low-Income Housing Credit Sec. 43. Enhanced Oil Recovery Credit

Sec. 44. Expenditures To Provide Access To Disabled Individuals Sec. 45. Electricity Produced From Certain Renewable Resources, Etc. Sec. 45A. Indian Employment Credit

Sec. 45B. Credit For Portion Of Employer Social Security Taxes Paid With Respect To Employee Cash Tips

Sec. 45C. Clinical Testing Expenses For Certain Drugs For Rare Diseases Or Conditions Sec. 45D. New Markets Tax Credit

Sec. 45E. Small Employer Pension Plan Startup Costs Sec. 45F. Employer-Provided Child Care Credit

Sec. 45G. Railroad Track Maintenance Credit

Sec. 45H. Credit For Production Of Low Sulfur Diesel Fuel.

Sec. 45I. Credit For Producing Oil And Gas From Marginal Wells

Sec. 45J. Credit For Production From Advanced Nuclear Power Facilities Sec. 45K. Credit For Producing Fuel From A Nonconventional Source Sec. 45L. New Energy Efficient Home Credit

Sec. 45M. Energy Efficient Appliance Credit [Repealed] Sec. 45N. Mine Rescue Team Training Credit

Sec. 45O. Agricultural Chemicals Security Credit

Sec. 45P. Employer Wage Credit For Employees Who Are Active Duty Members Of The Uniformed Services

Sec. 45Q. Credit For Carbon Oxide Sequestration

Sec. 45R. Employee Health Insurance Expenses Of Small Employers Sec. 45S. Employer Credit For Paid Family And Medical Leave

Sec. 45T. Auto-Enrollment Option For Retirement Savings Options Provided By Small Employers

Subpart E — Rules For Computing Investment Credit (Sections 46 to 50B) Subpart F — Rules for Computing Work Opportunity Credit (Sections 51 to 52)

Subpart G — Credit Against Regular Tax for Prior Year Minimum Tax Liability (Section 53)

Subpart H — Nonrefundable Credit to Holders of Clean Renewable Energy Bonds (Section 54) [Repealed]

Subpart I — Qualified Tax Credit Bonds (Sections 54A to 54F) [Repealed] Subpart J — Build America Bonds (Section 54AA) [Repealed]

Part VI — Alternative Minimum Tax (Sections 55 to 59)

Part VII—Base Erosion and Anti-Abuse Tax (Section 59A)

Part I — Definition of Gross Income, Adjusted Gross Income, Taxable Income, Etc. (Sections 61 to 68)

Sec. 61. Gross Income Defined

Sec. 62. Adjusted Gross Income Defined Sec. 63. Taxable Income Defined

Sec. 64. Ordinary Income Defined Sec. 65. Ordinary Loss Defined

Sec. 66. Treatment Of Community Income

Sec. 67. 2-Percent Floor On Miscellaneous Itemized Deductions Sec. 68. Overall Limitation On Itemized Deductions

Part II — Items Specifically Included In Gross Income (Sections 72 to 91)

Sec. 71. Alimony And Separate Maintenance Payments [Repealed]

Sec. 72. Annuities; Certain Proceeds Of Endowment And Life Insurance Contracts Sec. 73. Services Of Child

Sec. 74. Prizes And Awards

Sec. 75. Dealers In Tax-Exempt Securities Sec. 77. Commodity Credit Loans

Sec. 78. Gross Up For Deemed Paid Foreign Tax Credit

Sec. 79. Group-Term Life Insurance Purchased For Employees Sec. 80. Restoration Of Value Of Certain Securities

Sec. 82. Reimbursement Of Moving Expenses

Sec. 83. Property Transferred In Connection With Performance Of Services Sec. 84. Transfer Of Appreciated Property To Political Organizations

Sec. 85. Unemployment Compensation

Sec. 86. Social Security And Tier 1 Railroad Retirement Benefits Sec. 87. Alcohol And Biodiesel Fuels Credits

Sec. 88. Certain Amounts With Respect To Nuclear Decommissioning Costs Sec. 89. Benefits Provided Under Certain Employee Benefit Plans [Repealed] Sec. 90. Illegal Federal Irrigation Subsidies

Sec. 91. Certain Foreign Branch Losses Transferred To Specified 10-Percent Owned Foreign Corporations PART III — ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME (SECTIONS 101 TO 140)

Sec. 101. Certain Death Benefits Sec. 102. Gifts And Inheritances

Sec. 103. Interest On State And Local Bonds Sec. 103A. Mortgage Subsidy Bonds [Repealed] Sec. 104. Compensation For Injuries Or Sickness

Sec. 105. Amounts Received Under Accident And Health Plans

Sec. 106. Contributions By Employer To Accident And Health Plans Sec. 107. Rental Value Of Parsonages

Sec. 108. Income From Discharge Of Indebtedness

Sec. 109. Improvements By Lessee On Lessor’s Property

Sec. 110. Qualified Lessee Construction Allowances For Short-Term Leases Sec. 111. Recovery Of Tax Benefit Items

Sec. 112. Certain Combat Zone Compensation Of Members Of The Armed Forces Sec. 113. Mustering-Out Payments For Members Of The Armed Forces [Repealed]

Sec. 118. Contributions To The Capital Of A Corporation

Sec. 119. Meals Or Lodging Furnished For The Convenience Of The Employer

Sec. 120. Amounts Received Under Qualified Group Legal Services Plans [Repealed] Sec. 121. Exclusion Of Gain From Sale Of Principal Residence

Sec. 122. Certain Reduced Uniformed Services Retirement Pay

Sec. 123. Amounts Received Under Insurance Contracts For Certain Living Expenses Sec. 124. Qualified Transportation Provided By Employer [Repealed]

Sec. 125. Cafeteria Plans

Sec. 126. Certain Cost-Sharing Payments Sec. 127. Educational Assistance Programs

Sec. 128. Interest On Certain Savings Certificates [Repealed] Sec. 129. Dependent Care Assistance Programs

Sec. 130. Certain Personal Injury Liability Assignments Sec. 131. Certain Foster Care Payments

Sec. 132. Certain Fringe Benefits

Sec. 133. Interest On Certain Loans Used To Acquire Employer Securities [Repealed] Sec. 134. Certain Military Benefits

Sec. 135. Income From United States Savings Bonds Used To Pay Higher Education Tuition And Fees Sec. 136. Energy Conservation Subsidies Provided By Public Utilities

Sec. 137. Adoption Assistance Programs Sec. 138. Medicare Advantage MSA Sec. 139. Disaster Relief Payments

Sec. 139A. Federal Subsidies For Prescription Drug Plans

Sec. 139B. Benefits Provided To Volunteer Firefighters And Emergency Medical Responders Sec. 139C. COBRA Premium Assistance [Repealed]

Sec. 139D. Indian Health Care Benefits Sec. 139E. Indian General Welfare Benefits

Sec. 139F. Certain Amounts Received By Wrongfully Incarcerated Individuals Sec. 139G. Assignments To Alaska Native Settlement Trusts

Sec. 139H. Interest Received In Action To Recover Property Seized By The Internal Revenue Service Based On Structuring Transaction

Sec. 139I. Continuation Coverage Premium Assistance Sec. 140. Cross References To Other Acts

Part IV — Tax Exemption Requirements for State and Local Bonds (Sections 141 to 150) Part V — Deductions for Personal Exemptions (Sections 151 to 153)

Sec. 151. Allowance Of Deductions For Personal Exemptions Sec. 152. Dependent Defined

Sec. 153. Cross References

Part VI — Itemized Deductions for Individuals and Corporations (Sections 161 to 199A)

Sec. 161. Allowance Of Deductions Sec. 162. Trade Or Business Expenses Sec. 163. Interest

Sec. 164. Taxes

Sec. 165. Losses Sec. 166. Bad Debts

Sec. 168. Accelerated Cost Recovery System

Sec. 169. Amortization Of Pollution Control Facilities Sec. 170. Charitable, Etc., Contributions And Gifts Sec. 171. Amortizable Bond Premium

Sec. 172. Net Operating Loss Deduction Sec. 173. Circulation Expenditures

Sec. 174. Research And Experimental Expenditures (Amounts paid or incurred in taxable years beginning before 2022)

Sec. 174. Amortization of Research And Experimental Expenditures (Amounts paid or incurred in taxable years beginning after 2021)

Sec. 175. Soil And Water Conservation Expenditures; Endangered Species Recovery Expenditures Sec. 176. Payments With Respect To Employees Of Certain Foreign Corporations

Sec. 178. Amortization Of Cost Of Acquiring A Lease

Sec. 179. Election To Expense Certain Depreciable Business Assets

Sec. 179A. Deduction For Clean-Fuel Vehicles And Certain Refueling Property [Repealed]

Sec. 179B. Deduction For Capital Costs Incurred In Complying With Environmental Protection Agency Sulfur Regulations

Sec. 179C. Election To Expense Certain Refineries

Sec. 179D. Energy Efficient Commercial Buildings Deduction

Sec. 179E. Election To Expense Advanced Mine Safety Equipment Sec. 180. Expenditures By Farmers For Fertilizer, Etc.

Sec. 181. Treatment Of Certain Qualified Film And Television And Live Theatrical Productions Sec. 183. Activities Not Engaged In For Profit

Sec. 184. Amortization Of Certain Railroad Rolling Stock [Repealed] Sec. 186. Recoveries Of Damages For Antitrust Violations, Etc.

Sec. 188. Amortization Of Certain Expenditures For Child Care Facilities [Repealed]

Sec. 189. Amortization Of Real Property Construction Period Interest And Taxes [Repealed]

Sec. 190. Expenditures To Remove Architectural And Transportation Barriers To The Handicapped And Elderly

Sec. 192. Contributions To Black Lung Benefit Trust Sec. 193. Tertiary Injectants

Sec. 194. Treatment Of Reforestation Expenditures Sec. 194A. Contributions To Employer Liability Trusts Sec. 195. Start-Up Expenditures

Sec. 196. Deduction For Certain Unused Business Credits

Sec. 197. Amortization Of Goodwill And Certain Other Intangibles Sec. 198. Expensing Of Environmental Remediation Costs

Sec. 198A. Expensing of Qualified Disaster Expenses [Repealed]

Sec. 199. Income Attributable To Domestic Production Activities [Repealed] Sec. 199A. Qualified Business Income

Part VII — Additional Itemized Deductions for Individuals (Sections 211 to 224)

Sec. 211. Allowance Of Deductions

Sec. 212. Expenses For Production Of Income Sec. 213. Medical, Dental, Etc., Expenses Sec. 215. Alimony, Etc., Payments [Repealed]

Sec. 216. Deduction Of Taxes, Interest, And Business Depreciation By Cooperative Housing Corporation Tenant-Stockholder

Sec. 217. Moving Expenses Sec. 219. Retirement Savings

Sec. 221. Interest On Education Loans

Sec. 222. Qualified Tuition And Related Expenses [Repealed] Sec. 223. Health Savings Accounts

Sec. 224. Cross Reference

Part VIII — Special Deductions for Corporations (Sections 241 to 250) Part IX — Items not Deductible (Sections 261 to 280H)

Sec. 261. General Rule For Disallowance Of Deductions Sec. 262. Personal, Living, And Family Expenses

Sec. 263. Capital Expenditures

Sec. 263A. Capitalization And Inclusion In Inventory Costs Of Certain Expenses Sec. 264. Certain Amounts Paid In Connection With Insurance Contracts

Sec. 265. Expenses And Interest Relating To Tax-Exempt Income Sec. 266. Carrying Charges

Sec. 267. Losses, Expenses, And Interest With Respect To Transactions Between Related Taxpayers Sec. 267A. Certain Related Party Amounts Paid Or Accrued In Hybrid Transactions Or With Hybrid Entities

Sec. 268. Sale Of Land With Unharvested Crop

Sec. 269. Acquisitions Made To Evade Or Avoid Income Tax

Sec. 269A. Personal Service Corporations Formed Or Availed Of To Avoid Or Evade Income Tax Sec. 269B. Stapled Entities

Sec. 271. Debts Owed By Political Parties, Etc. Sec. 272. Disposal Of Coal Or Domestic Iron Ore Sec. 273. Holders Of Life Or Terminable Interest

Sec. 274. Disallowance Of Certain Entertainment, Etc., Expenses Sec. 275. Certain Taxes

Sec. 276. Certain Indirect Contributions To Political Parties

Sec. 277. Deductions Incurred By Certain Membership Organizations In Transactions With Members Sec. 279. Interest On Indebtedness Incurred By Corporation To Acquire Stock Or Assets Of Another Corporation

Sec. 280A. Disallowance Of Certain Expenses In Connection With Business Use Of Home, Rental Of Vacation Homes, Etc.

Sec. 280B. Demolition Of Structures

Sec. 280C. Certain Expenses For Which Credits Are Allowable

Sec. 280E. Expenditures In Connection With The Illegal Sale Of Drugs

Sec. 280F. Limitation On Depreciation For Luxury Automobiles; Limitation Where Certain Property Used For Personal Purposes

Sec. 280G. Golden Parachute Payments

Sec. 280H. Limitation On Certain Amounts Paid To Employee-Owners By Personal Service Corporations Electing Alternative Taxable Years

Part X — Terminal Railroad Corporations and Their Shareholders (Section 281) Part XI — Special Rules Relating to Corporate Preference Items (Section 291)

SUBCHAPTER C — CORPORATE DISTRIBUTIONS AND ADJUSTMENTS (SECTIONS 301 TO 385)

SUBCHAPTER D — DEFERRED COMPENSATION, ETC. (SECTIONS 401 TO 436)

SUBCHAPTER E — ACCOUNTING PERIODS AND METHODS OF ACCOUNTING (SECTIONS 441 TO 483)

Sec. 441. Period For Computation Of Taxable Income Sec. 442. Change Of Annual Accounting Period

Sec. 443. Returns For A Period Of Less Than 12 Months

Sec. 444. Election Of Taxable Year Other Than Required Taxable Year

Part II — Methods of Accounting (Sections 446 to 475)

Subpart A — Methods of Accounting in General (Sections 446 to 448)

Sec. 446. General Rule For Methods Of Accounting

Sec. 447. Method Of Accounting For Corporations Engaged In Farming Sec. 448. Limitation On Use Of Cash Method Of Accounting

Subpart B — Taxable Year for Which Items of Gross Income Included (Sections 451 to 460)

Sec. 451. General Rule For Taxable Year Of Inclusion Sec. 453. Installment Method

Sec. 453A. Special Rules For Nondealers

Sec. 453B. Gain Or Loss On Disposition Of Installment Obligations Sec. 454. Obligations Issued At Discount

Sec. 455. Prepaid Subscription Income

Sec. 456. Prepaid Dues Income Of Certain Membership Organizations

Sec. 457. Deferred Compensation Plans Of State And Local Governments And Tax-Exempt Organizations Sec. 457A. Nonqualified Deferred Compensation From Certain Tax Indifferent Parties

Sec. 458. Magazines, Paperbacks, And Records Returned After The Close Of The Taxable Year Sec. 460. Special Rules For Long-Term Contracts

Subpart C — Taxable Year for Which Deductions Taken (Sections 461 to 470)

Sec. 461. General Rule For Taxable Year Of Deduction

Sec. 464. Limitations On Deductions For Certain Farming Expenses Sec. 465. Deductions Limited To Amount At Risk

Sec. 467. Certain Payments For The Use Of Property Or Services

Sec. 468. Special Rules For Mining And Solid Waste Reclamation And Closing Costs Sec. 468A. Special Rules For Nuclear Decommissioning Costs

Sec. 468B. Special Rules For Designated Settlement Funds Sec. 469. Passive Activity Losses And Credits Limited

Sec. 470. Limitation On Deductions Allocable To Property Used By Governments Or Other Tax-Exempt Entities

Subpart D — Inventories (Sections 471 to 475)

PART III — ADJUSTMENTS (SECTIONS 481 TO 483) SUBCHAPTER F — EXEMPT ORGANIZATIONS (SECTIONS 501 TO 530)

SUBCHAPTER G — CORPORATIONS USED TO AVOID INCOME TAX ON SHAREHOLDERS (SECTIONS 531 TO 565)

SUBCHAPTER H — BANKING INSTITUTIONS (SECTIONS 581 TO 597) SUBCHAPTER I — NATURAL RESOURCES (SECTIONS 611 TO 638)

SUBCHAPTER J — ESTATES, TRUSTS, BENEFICIARIES, AND DECEDENTS (SECTIONS 641 TO 692)

SUBCHAPTER K — PARTNERS AND PARTNERSHIPS (SECTIONS 701 TO 777)

SUBCHAPTER M — REGULATED INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT TRUSTS (SECTIONS 851 TO 860L)

SUBCHAPTER N — TAX BASED ON INCOME FROM SOURCES WITHIN OR WITHOUT THE UNITED STATES (SECTIONS 861 TO 999)

SUBCHAPTER O — GAIN OR LOSS ON DISPOSITION OF PROPERTY (SECTIONS 1001 TO 1103) SUBCHAPTER P — CAPITAL GAINS AND LOSSES (SECTIONS 1202 TO 1298)

Part I — Treatment of Capital Gains (Section 1202) Part II — Treatment of Capital Losses (Sections 1211 to 1212)

Sec. 1211. Limitation On Capital Losses

Sec. 1212. Capital Loss Carrybacks And Carryovers

Part III — General Rules for Determining Capital Gains and Losses (Sections 1221 to 1223)

Sec. 1221. Capital Asset Defined

Sec. 1222. Other Terms Relating To Capital Gains And Losses Sec. 1223. Holding Period Of Property

Part IV — Special Rules for Determining Capital Gains and Losses (Sections 1231 to 1260)

Sec. 1231. Property Used In The Trade Or Business And Involuntary Conversions Sec. 1233. Gains And Losses From Short Sales

Sec. 1234. Options To Buy Or Sell

Sec. 1234A. Gains Or Losses From Certain Terminations

Sec. 1234B. Gains Or Losses From Securities Futures Contracts Sec. 1235. Sale Or Exchange Of Patents

Sec. 1236. Dealers In Securities

Sec. 1237. Real Property Subdivided For Sale

Sec. 1238. Amortization In Excess Of Depreciation [Repealed]

Sec. 1239. Gain From Sale Of Depreciable Property Between Certain Related Taxpayers Sec. 1241. Cancellation Of Lease Or Distributor’s Agreement

Sec. 1242. Losses On Small Business Investment Company Stock Sec. 1243. Loss Of Small Business Investment Company

Sec. 1244. Losses On Small Business Stock

Sec. 1245. Gain From Dispositions Of Certain Depreciable Property Sec. 1246. Gain On Foreign Investment Company Stock [Repealed]

Sec. 1247. Election By Foreign Investment Companies To Distribute Income Currently [Repealed] Sec. 1248. Gain From Certain Sales Or Exchanges Of Stock In Certain Foreign Corporations

Sec. 1249. Gain From Certain Sales Or Exchanges Of Patents, Etc., To Foreign Corporations Sec. 1250. Gain From Dispositions Of Certain Depreciable Realty

Sec. 1252. Gain From Disposition Of Farm Land

Sec. 1253. Transfers Of Franchises, Trademarks, And Trade Names

Sec. 1254. Gain From Disposition Of Interest In Oil, Gas, Geothermal, Or Other Mineral Properties Sec. 1255. Gain From Disposition Of Section 126 Property

Sec. 1256. Section 1256 Contracts Marked To Market

Sec. 1257. Disposition Of Converted Wetlands Or Highly Erodible Croplands

Sec. 1258. Recharacterization Of Gain From Certain Financial Transactions

Sec. 1259. Constructive Sales Treatment For Appreciated Financial Positions

Sec. 1260. Gains From Constructive Ownership Transactions