---

26 C.F.R. PART 1--INCOME TAXES

TITLE 26--Internal Revenue

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY

SUBCHAPTER A--INCOME TAX

PART 1--INCOME TAXES

Table of Contents

Headings

�1.61-1

Gross income.

�1.61-2

Compensation for services, including fees, commissions, and similar items.

�1.61-2t

Taxation of fringe benefits--1985 through 1988 (temporary).

�1.61-3

Gross income derived from business.

�1.61-4

Gross income of farmers.

�1.61-5

Allocations by cooperative associations; per-unit retain certificates--tax treatment as to cooperatives and patrons.

�1.61-6

Gains derived from dealings in property.

�1.61-7

Interest.

�1.61-8

Rents and royalties.

�1.61-9

Dividends.

�1.61-10

Alimony and separate maintenance payments; annuities; income from life insurance and endowment contracts.

�1.61-11

Pensions.

�1.61-12

Income from discharge of indebtedness.

�1.61-13

Distributive share of partnership gross income; income in respect of a decedent; income from an interest in an estate or trust.

�1.61-14

Miscellaneous items of gross income.

�1.61-15

Options received as payment of income.

�1.61-21

Taxation of fringe benefits.

�1.61-22

Taxation of split-dollar life insurance arrangements.

�1.62-1

Adjusted gross income.

�1.62-1t

Adjusted gross income (temporary).

�1.62-2

Reimbursements and other expense allowance arrangements.

�1.63-1

Change of treatment with respect to the zero bracket amount and itemized deductions.

�1.63-2

Cross reference.

�1.66-1

Treatment of community income.

�1.66-2

Treatment of community income where spouses live apart.

�1.66-3

Denial of the Federal income tax benefits resulting from the operation of community property law where spouse not notified.

�1.66-4

Request for relief from the Federal income tax liability resulting from the operation of community property law.

�1.66-5

Effective date.

�1.67-1t

2-percent floor on miscellaneous itemized deductions (temporary).

�1.67-2t

Treatment of pass-through entities (temporary).

�1.67-3

Allocation of expenses by real estate mortgage investment conduits.

�1.67-3t

Allocation of expenses by real estate mortgage investment conduits (temporary).

�1.67-4t

Allocation of expenses by nongrantor trusts and estates (temporary).--[Reserved]

�1.71-1

Alimony and separate maintenance payments; income to wife or former wife.

�1.71-1t

Alimony and separate maintenance payments (temporary).

�1.71-2

Effective date; taxable years ending after March 31, 1954, subject to the Internal Revenue Code of 1939.

�1.72-1

Introduction.

�1.72-2

Applicability of section.

�1.72-3

Excludable amounts not income.

�1.72-4

Exclusion ratio.

�1.72-5

Expected return.

�1.72-6

Investment in the contract.

�1.72-7

Adjustment in investment where a contract contains a refund feature.

�1.72-8

Effect of certain employer contributions with respect to premiums or other consideration paid or contributed by an employee.

�1.72-9

Tables.

�1.72-10

Effect of transfer of contracts on investment in the contract.

�1.72-11

Amounts not received as annuity payments.

�1.72-12

Effect of taking an annuity in lieu of a lump sum upon the maturity of a contract.

�1.72-13

Special rule for employee contributions recoverable in three years.

�1.72-14

Exceptions from application of principles of section 72.

�1.72-15

Applicability of section 72 to accident or health plans.

�1.72-16

Life insurance contracts purchased under qualified employee plans.

�1.72-17

Special rules applicable to owner-employees.

�1.72-17a

Special rules applicable to employee annuities and distributions under deferred compensation plans to self-employed individuals and owner-employees.

�1.72-18

Treatment of certain total distributions with respect to self-employed individuals.

�1.72(e)-1t

Treatment of distributions where substantially all contributions are employee contributions (temporary).

�1.72(p)-1

Loans treated as distributions.

�1.73-1

Services of child.

�1.74-1

Prizes and awards.

�1.75-1

Treatment of bond premiums in case of dealers in tax-exempt securities.

�1.77-1

Election to consider Commodity Credit Corporation loans as income.

�1.77-2

Effect of election to consider commodity credit loans as income.

�1.78-1

Dividends received from certain foreign corporations by certain domestic corporations choosing the foreign tax credit.

�1.79-0

Group-term life insurance--definitions of certain terms.

�1.79-1

Group-term life insurance--general rules.

�1.79-2

Exceptions to the rule of inclusion.

�1.79-3

Determination of amount equal to cost of group-term life insurance.

�1.79-4t

Questions and answers relating to the nondiscrimination requirements for group-term life insurance (temporary).

�1.82-1

Payments for or reimbursements of expenses of moving from one residence to another residence attributable to employment or self-employment.

�1.83-1

Property transferred in connection with the performance of services.

�1.83-2

Election to include in gross income in year of transfer.

�1.83-3

Meaning and use of certain terms.

�1.83-4

Special rules.

�1.83-5

Restrictions that will never lapse.

�1.83-6

Deduction by employer.

�1.83-7

Taxation of nonqualified stock options.

�1.83-8

Applicability of section and transitional rules.

�1.84-1

Transfer of appreciated property to political organizations.

�1.85-1

Unemployment compensation.

�1.88-1

Nuclear decommissioning costs.

�1.101-1

Exclusion from gross income of proceeds of life insurance contracts payable by reason of death.

�1.101-2

Employees' death benefits.

�1.101-3

Interest payments.

�1.101-4

Payment of life insurance proceeds at a date later than death.

�1.101-5

Alimony, etc., payments.

�1.101-6

Effective date.

�1.101-7

Mortality table used to determine exclusion for deferred payments of life insurance proceeds.

�1.102-1

Gifts and inheritances.

�1.103-1

Interest upon obligations of a State, territory, etc.

�1.103-2

Dividends from shares and stock of Federal agencies or instrumentalities.

�1.103-3

Interest upon notes secured by mortgages executed to Federal agencies or instrumentalities.

�1.103-4

Interest upon United States obligations.

�1.103-5

Treasury bond exemption in the case of trusts or partnerships.

�1.103-6

Interest upon United States obligations in the case of nonresident aliens and foreign corporations, not engaged in business in the United States.

�1.103-7

Industrial development bonds.

�1.103-8

Interest on bonds to finance certain exempt facilities.

�1.103-9

Interest on bonds to finance industrial parks.

�1.103-10

Exemption for certain small issues of industrial development bonds.

�1.103-11

Bonds held by substantial users.

�1.103-16

Obligations of certain volunteer fire departments.

�1.103(n)-1t

Limitation on aggregrate amount of private activity bonds (temporary).

�1.103(n)-2t

Private activity bond defined (temporary).

�1.103(n)-3t

Private activity bond limit (temporary).

�1.103(n)-4t

Elective carryforward of unused private activity bond limit (temporary).

�1.103(n)-5t

Certification of no consideration for allocation (temporary).

�1.103(n)-6t

Determinations of population (temporary).

�1.103(n)-7t

Election to allocate State ceiling to certain facilities for local furnishing of electricity (temporary).

�1.103a-2

Qualified mortgage bond.

�1.104-1

Compensation for injuries or sickness.

�1.105-1

Amounts attributable to employer contributions.

�1.105-2

Amounts expended for medical care.

�1.105-3

Payments unrelated to absence from work.

�1.105-4

Wage continuation plans.

�1.105-5

Accident and health plans.

�1.105-6

Special rules for employees retired before January 27, 1975.

�1.105-11

Self-insured medical reimbursement plan.

�1.106-1

Contributions by employer to accident and health plans.

�1.107-1

Rental value of parsonages.

�1.108-1

Stock-for-debt exception not to apply in de minimis cases.

�1.108-2

Acquisition of indebtedness by a person related to the debtor.

�1.108-3

Intercompany losses and deductions.

�1.108-4

Election to reduce basis of depreciable property under section 108(b)(5) of the Internal Revenue Code .

�1.108-5

Time and manner for making election under the Omnibus Budget Reconciliation Act of 1993.

�1.108-6

Limitations on the exclusion of income from the discharge of qualified real property business indebtedness.

�1.108-7

Reduction of attributes.

�1.108(c)-1t

[Reserved]

�1.109-1

Exclusion from gross income of lessor of real property of value of improvements erected by lessee.

�1.110-1

Qualified lessee construction allowances.

�1.111-1

Recovery of certain items previously deducted or credited.

�1.112-1

Combat zone compensation of members of the Armed Forces.

�1.113-1

Mustering-out payments for members of the Armed Forces.

�1.117-1

Exclusion of amounts received as a scholarship or fellowship grant.

�1.117-2

Limitations.

�1.117-3

Definitions.

�1.117-4

Items not considered as scholarships or fellowship grants.

�1.117-5

Federal grants requiring future service as a Federal employee.

�1.118-1

Contributions to the capital of a corporation.

�1.118-2

Contribution in aid of construction.

�1.119-1

Meals and lodging furnished for the convenience of the employer.

�1.120-1

Statutory subsistence allowance received by police.

�1.120-3

Notice of application for recognition of status of qualified group legal services plan.

�1.121-1

Exclusion of gain from sale or exchange of a principal residence.

�1.121-2

Limitations.

�1.121-3

Reduced maximum exclusion for taxpayers failing to meet certain requirements.

�1.121-4

Special rules.

�1.121-5

Suspension of 5-year period for certain members of the uniformed services and Foreign Service.

�1.122-1

Applicable rules relating to certain reduced uniformed services retirement pay.

�1.123-1

Exclusion of insurance proceeds for reimbursement of certain living expenses.

�1.125-2t

Question and answer relating to the benefits that may be offered under a cafeteria plan (temporary).

�1.125-3

Effect of the Family and Medical Leave Act (FMLA) on the operation of cafeteria plans.

�1.125-4

Permitted election changes.

�1.125-4t

Permitted election changes (temporary).

�1.127-1

Amounts received under a qualified educational assistance program.

�1.127-2

Qualified educational assistance program.

�1.132-0

Outline of regulations under section 132.

�1.132-1

Exclusion from gross income for certain fringe benefits.

�1.132-1t

Exclusion from gross income of certain fringe benefits--1985 through 1988 (temporary).

�1.132-2

No-additional-cost services.

�1.132-2t

No-additional-cost service--1985 through 1988 (temporary).

�1.132-3

Qualified employee discounts.

�1.132-3t

Qualified employee discount--1985 through 1988 (temporary).

�1.132-4

Line of business limitation.

�1.132-4t

Line of business limitation--1985 through 1988 (temporary).

�1.132-5

Working condition fringes.

�1.132-5t

Working condition fringe--1985 through 1988 (temporary).

�1.132-6

De minimis fringes.

�1.132-6t

De minimis fringe--1985 through 1988 (temporary).

�1.132-7

Employer-operated eating facilities.

�1.132-7t

Treatment of employer-operated eating facilities--1985 through 1988 (temporary).

�1.132-8

Fringe benefit nondiscrimination rules.

�1.132-8t

Nondiscrimination rules--1985 through 1988 (temporary).

�1.132-9

Qualified transportation fringes.

�1.133-1t

Questions and answers relating to interest on certain loans used to acquire employer securities (temporary).

�1.141-0

Table of contents.

�1.141-1

Definitions and rules of general application.

�1.141-2

Private activity bond tests.

�1.141-3

Definition of private business use.

�1.141-4

Private security or payment test.

�1.141-5

Private loan financing test.

�1.141-6

Allocation and accounting rules.

�1.141-7

Special rules for output facilities.

�1.141-8

$15 million limitation for output facilities.

�1.141-9

Unrelated or disproportionate use test.

�1.141-10

Coordination with volume cap.--[Reserved]

�1.141-11

Acquisition of nongovernmental output property.--[Reserved]

�1.141-12

Remedial actions.

�1.141-13

Refunding issues.

�1.141-14

Anti-abuse rules.

�1.141-15

Effective dates.

�1.141-16

Effective dates for qualified private activity bond provisions.

�1.142-0

Table of contents.

�1.142-1

Exempt facility bonds.

�1.142-2

Remedial actions.

�1.142-3

Refunding Issues.--[Reserved]

�1.142-4

Use of proceeds to provide a facility.

�1.142(a)(5)-1

Exempt facility bonds: Sewage facilities.

�1.142(f)(4)-1

Manner of making election to terminate tax-exempt bond financing.

�1.143(g)-1

Requirements related to arbitrage.

�1.144-0

Table of contents.

�1.144-1

Qualified small issue bonds, qualified student loan bonds, and qualified redevelopment bonds.

�1.144-2

Remedial actions.

�1.145-0

Table of contents.

�1.145-1

Qualified 501(c)(3) bonds.

�1.145-2

Application of private activity bond regulations.

�1.147-0

Table of contents.

�1.147-1

Other requirements applicable to certain private activity bonds.

�1.147-2

Remedial actions.

�1.147(b)-1

Bond maturity limitation-treatment of working capital.

�1.148-0

Scope and table of contents.

�1.148-1

Definitions and elections.

�1.148-2

General arbitrage yield restriction rules.

�1.148-3

General arbitrage rebate rules.

�1.148-4

Yield on an issue of bonds.

�1.148-5

Yield and valuation of investments.

�1.148-6

General allocation and accounting rules.

�1.148-7

Spending exceptions to the rebate requirement.

�1.148-8

Small issuer exception to rebate requirement.

�1.148-9

Arbitrage rules for refunding issues.

�1.148-10

Anti-abuse rules and authority of Commissioner.

�1.148-11

Effective dates.

�1.149(b)-1

Federally guaranteed bonds.

�1.149(d)-1

Limitations on advance refundings.

�1.149(e)-1

Information reporting requirements for tax-exempt bonds.

�1.149(g)-1

Hedge bonds.

�1.150-1

Definitions.

�1.150-2

Proceeds of bonds used for reimbursement.

�1.150-4

Change in use of facilities financed with tax-exempt private activity bonds.

�1.150-5

Filing notices and elections.

�1.148-1a

Definitions and elections.

�1.148-2a

General arbitrage yield restriction rules.

�1.148-3a

General arbitrage rebate rules.

�1.148-4a

Yield on an issue of bonds.

�1.148-5a

Yield and valuation of investments.

�1.148-6a

General allocation and accounting rules.

�1.148-9a

Arbitrage rules for refunding issues.

�1.148-10a

Anti-abuse rules and authority of Commissioner.

�1.148-11a

Effective dates.

�1.149(d)-1a

Limitations on advance refundings.

�1.150-1a

Definitions.

�1.151-1

Deductions for personal exemptions.

�1.151-2

Additional exemptions for dependents.

�1.151-3

Definitions.

�1.151-4

Amount of deduction for each exemption under section 151.

�1.152-1

General definition of a dependent.

�1.152-2

Rules relating to general definition of dependent.

�1.152-3

Multiple support agreements.

�1.152-4

Support test in case of child of divorced or separated parents.

�1.152-4t

Dependency exemption in the case of a child of divorced parents, etc. (temporary).

�1.153-1

Determination of marital status.

�1.154

Statutory provisions; cross references.

�1.161-1

Allowance of deductions.

�1.162-1

Business expenses.

�1.162-2

Traveling expenses.

�1.162-3

Cost of materials.

�1.162-4

Repairs.

�1.162-5

Expenses for education.

�1.162-6

Professional expenses.

�1.162-7

Compensation for personal services.

�1.162-8

Treatment of excessive compensation.

�1.162-9

Bonuses to employees.

�1.162-10

Certain employee benefits.

�1.162-10t

Questions and answers relating to the deduction of employee benefits under the Tax Reform Act of 1984; certain limits on amounts deductible (temporary).

�1.162-11

Rentals.

�1.162-12

Expenses of farmers.

�1.162-13

Depositors' guaranty fund.

�1.162-14

Expenditures for advertising or promotion of good will.

�1.162-15

Contributions, dues, etc.

�1.162-16

Cross reference.

�1.162-17

Reporting and substantiation of certain business expenses of employees.

�1.162-18

Illegal bribes and kickbacks.

�1.162-19

Capital contributions to Federal National Mortgage Association.

�1.162-20

Expenditures attributable to lobbying, political campaigns, attempts to influence legislation, etc., and certain advertising.

�1.162-21

Fines and penalties.

�1.162-22

Treble damage payments under the antitrust laws.

�1.162-25

Deductions with respect to noncash fringe benefits.

�1.162-25t

Deductions with respect to noncash fringe benefits (temporary).

�1.162-27

Certain employee remuneration in excess of $1,000,000.

�1.162-28

Allocation of costs to lobbying activities.

�1.162-29

Influencing legislation.

�1.163-1

Interest deduction in general.

�1.163-2

Installment purchases where interest charge is not separately stated.

�1.163-3

Deduction for discount on bond issued on or before May 27, 1969.

�1.163-4

Deduction for original issue discount on certain obligations issued after May 27, 1969.

�1.163-5

Denial of interest deduction on certain obligations issued after December 31, 1982, unless issued in registered form.

�1.163-5t

Denial of interest deduction on certain obligations issued after December 31, 1982, unless issued in registered form (temporary).

�1.163-6t

Reduction of deduction where section 25 credit taken (temporary).

�1.163-7

Deduction for OID on certain debt instruments.

�1.163-8t

Allocation of interest expense among expenditures (temporary).

�1.163-9t

Personal interest (temporary).

�1.163-10t

Qualified residence interest (temporary).

�1.163-12

Deduction of original issue discount on instrument held by related foreign person.

�1.163-13

Treatment of bond issuance premium.

�1.163(d)-1

Time and manner for making elections under the Omnibus Budget Reconciliation Act of 1993 and the Jobs and Growth Tax Relief Reconciliation Act of 2003.

�1.164-1

Deduction for taxes.

�1.164-2

Deduction denied in case of certain taxes.

�1.164-3

Definitions and special rules.

�1.164-4

Taxes for local benefits.

�1.164-5

Certain retail sales taxes and gasoline taxes.

�1.164-6

Apportionment of taxes on real property between seller and purchaser.

�1.164-7

Taxes of shareholder paid by corporation.

�1.164-8

Payments for municipal services in atomic energy communities.

�1.165-1

Losses.

�1.165-2

Obsolescence of nondepreciable property.

�1.165-3

Demolition of buildings.

�1.165-4

Decline in value of stock.

�1.165-5

Worthless securities.

�1.165-6

Farming losses.

�1.165-7

Casualty losses.

�1.165-8

Theft losses.

�1.165-9

Sale of residential property.

�1.165-10

Wagering losses.

�1.165-11

Election in respect of losses attributable to a disaster.

�1.165-12

Denial of deduction for losses on registration-required obligations not in registered form.

�1.165-13t

Questions and answers relating to the treatment of losses on certain straddle transactions entered into before the effective date of the Economic Recovery Tax Act of 1981, under section 108 of the Tax Reform Act of 1984 (temporary).

�1.166-1

Bad debts.

�1.166-2

Evidence of worthlessness.

�1.166-3

Partial or total worthlessness.

�1.166-4

Reserve for bad debts.

�1.166-5

Nonbusiness debts.

�1.166-6

Sale of mortgaged or pledged property.

�1.166-7

Worthless bonds issued by an individual.

�1.166-8

Losses of guarantors, endorsers, and indemnitors incurred on agreements made before January 1, 1976.

�1.166-9

Losses of guarantors, endorsers, and indemnitors incurred, on agreements made after December 31, 1975, in taxable years beginning after such date.

�1.166-10

Reserve for guaranteed debt obligations.

�1.167(a)-1

Depreciation in general.

�1.167(a)-2

Tangible property.

�1.167(a)-3

Intangibles.

�1.167(a)-4

Leased property.

�1.167(a)-5

Apportionment of basis.

�1.167(a)-5t

Application of section 1060 to section 167 (temporary).

�1.167(a)-6

Depreciation in special cases.

�1.167(a)-7

Accounting for depreciable property.

�1.167(a)-8

Retirements.

�1.167(a)-9

Obsolescence.

�1.167(a)-10

When depreciation deduction is allowable.

�1.167(a)-11

Depreciation based on class lives and asset depreciation ranges for property placed in service after December 31, 1970.

�1.167(a)-12

Depreciation based on class lives for property first placed in service before January 1, 1971.

�1.167(a)-13t

Certain elections for intangible property (temporary).

�1.167(a)-14

Treatment of certain intangible property excluded from section 197.

�1.167(a)-14t

Treatment of certain intangible property excluded from section 197 (temporary).

�1.167(b)-0

Methods of computing depreciation.

�1.167(b)-1

Straight line method.

�1.167(b)-2

Declining balance method.

�1.167(b)-3

Sum of the years-digits method.

�1.167(b)-4

Other methods.

�1.167(c)-1

Limitations on methods of computing depreciation under section 167(b) (2), (3), and (4).

�1.167(d)-1

Agreement as to useful life and rates of depreciation.

�1.167(e)-1

Change in method.

�1.167(e)-1t

Change in method (temporary).

�1.167(f)-1

Reduction of salvage value taken into account for certain personal property.

�1.167(g)-1

Basis for depreciation.

�1.167(h)-1

Life tenants and beneficiaries of trusts and estates.

�1.167(i)-1

Depreciation of improvements in the case of mines, etc.

�1.167(l)-1

Limitations on reasonable allowance in case of property of certain public utilities.

�1.167(l)-2

Public utility property; election as to post-1969 property representing growth in capacity.

�1.167(l)-3

Multiple regulation, asset acquisitions, reorganizations, etc.

�1.167(l)-4

Public utility property; election to use asset depreciation range system.

�1.167(m)-1

Class lives.

�1.168-5

Special rules.

�1.168(a)-1t

Modified accelerated cost recovery system (temporary).

�1.168(b)-1t

Definitions (temporary).

�1.168(d)-0

Table of contents for the applicable convention rules.

�1.168(d)-1

Applicable convention--Half-year and mid-quarter conventions.

�1.168(d)-1t

Applicable conventions--Half-year and mid-quarter conventions (temporary).

�1.168(f)(8)-1t

Safe-harbor lease information returns concerning qualified mass commuting vehicles (temporary).

�1.168(h)-1

Like-kind exchanges involving tax-exempt use property.

�1.168(i)-0

Table of contents for the general asset account rules.

�1.168(i)-0t

Table of contents for the general asset account rules (temporary).

�1.168(i)-1

General asset accounts.

�1.168(i)-1t

General asset accounts (temporary).

�1.168(i)-2

Lease term.

�1.168(i)-4

Changes in use.

�1.168(i)-5t

Table of contents (temporary).

�1.168(i)-6t

Like-kind exchanges and involuntary conversions (temporary).

�1.168(j)-1t

Questions and answers concerning tax-exempt entity leasing rules (temporary).

�1.168(k)-0t

Table of contents (temporary).

�1.168(k)-1t

Additional first year depreciation deduction (temporary).

�1.168a-1

Amortization of emergency facilities; general rule.

�1.168a-2

Election of amortization.

�1.168a-3

Election to discontinue amortization.

�1.168a-4

Definitions.

�1.168a-5

Adjusted basis of emergency facility.

�1.168a-6

Depreciation of portion of emergency facility not subject to amortization.

�1.168a-7

Payment by United States of unamortized cost of facility.

�1.169-1

Amortization of pollution control facilities.

�1.169-2

Definitions.

�1.169-3

Amortizable basis.

�1.169-3t

Amortizable basis (temporary).

�1.169-4

Time and manner of making elections.