26 U.S.C. 162: Trade or business expenses

2021

• Pub. L. 117–2 added subpar. (C), redesignated former subpar. (C) as (D), and, in subpar. (D), substituted "employee described in subparagraph (A) or (B)" for "employee". Law text · (m), (D)

2017

• Pub. L. 115–97, §13311(a), struck out "in excess of $3,000" after "income tax purposes" in concluding provisions. Law text · (a)
• Pub. L. 115–97, §13308(a), redesignated pars. (3) to (6) and (8) as (2) to (6), respectively, and struck out former par. (2) relating to exception for local legislation and par. (7) relating to special rule for Indian tribal governments. Law text · (e)
• Pub. L. 115–97, §13306(a)(1), amended subsec. (f) generally. Prior to amendment, text read as follows: "No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law." Law text · (f)
• Pub. L. 115–97, §13601(c)(1), amended par. (2) generally. Prior to amendment, text read as follows: "For purposes of this subsection, the term 'publicly held corporation' means any corporation issuing any class of common equity securities required to be registered under section 12 o… Law text · (m)
• Pub. L. 115–97, §13601(c)(2), inserted concluding provisions. Law text · (m)
• Pub. L. 115–97, §13601(b)(1), substituted "such employee is the principal executive officer or principal financial officer of the taxpayer at any time during the taxable year, or was" for "as of the close of the taxable year, such employee is the chief executive officer of the ta… Law text · (m)
• Pub. L. 115–97, §13601(b)(2), substituted "3" for "4" and "(other than any individual described in subparagraph (A))" for "(other than the chief executive officer)". Law text · (m)
• Pub. L. 115–97, §13601(b)(3), added subpar. (C). Law text · (m)
• Pub. L. 115–97, §13601(a)(1), redesignated subpars. (D) to (G) as (B) to (E), respectively, and struck out former subpar. (B) relating to an exemption to the term "applicable employee remuneration" and former subpar. (C) relating to the term "applicable employee remunerati… Law text · (m)
• Pub. L. 115–97, §13601(a)(1), (d), added subpar. (F) and redesignated former subpar. (F) as (D). Law text · (m)
• Pub. L. 115–97, §13601(a)(1), redesignated subpar. (G) as (E). Law text · (m)
• Pub. L. 115–97, §13601(a)(2)(A), substituted "subparagraph (B)" for "subparagraphs (B), (C), and (D)". Law text · (m)
• Pub. L. 115–97, §13601(a)(2)(B), substituted "(D) and (E)" for "(F) and (G)". Law text · (m)
• Pub. L. 115–97, §13601(a)(2)(A), substituted "subparagraph (B)" for "subparagraphs (B), (C), and (D)". Law text · (m)
• Pub. L. 115–97, §13601(a)(2)(B), substituted "(D) and (E)" for "(F) and (G)". Law text · (m)
• Pub. L. 115–97, §11002(d)(6), substituted "adjusted by increasing any such amount under the 1991 agreement by an amount equal to—" and subpars. (A) and (B) for "adjusted for changes in the Consumer Price Index (as defined in section 1(f)(5)) since 1991." Law text · (o)
• Pub. L. 115–97, §13307(a), added subsec. (q). Former subsec. (q) redesignated (r), then (s). Law text · (q)
• Pub. L. 115–97, §13531(a), added subsec. (r). Law text · (r)
• Pub. L. 115–97, §§13307(a), 13531(a), redesignated subsec. (q) as (r), then (s). Law text · (s)

2014

• Pub. L. 113–295, §221(a)(23), struck out concluding provisions which read as follows: "The preceding sentence shall not apply with respect to any conviction or plea before January 1, 1970, or to any conviction or plea on or after such date in a new trial following an appeal of a convic… Law text · (g)
• Pub. L. 113–295, §221(a)(24), substituted "This subsection" for "For taxable years beginning after December 31, 1980, this subsection". Law text · (h)

2011

• Pub. L. 112–10 struck out last sentence in concluding provisions which read as follows: "For purposes of paragraph (1), the amount of a free choice voucher provided under section 10108 of the Patient Protection and Affordable Care Act shall be treated as an amount for compensation for … (Department of Defense and Full-Year Continuing Appropriations Act, 2011) Law text · (a)

2010

• Pub. L. 111–148, §10108(g)(1), inserted at end of concluding provisions "For purposes of paragraph (1), the amount of a free choice voucher provided under section 10108 of the Patient Protection and Affordable Care Act shall be treated as an amount for compensation for personal service… (Patient Protection and Affordable Care Act) Law text · (a)
• Pub. L. 111–152, §1004(d)(2), amended par. (1) generally. Prior to amendment, par. (1) authorized a deduction in an amount equal to the applicable percentage of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dep… (Health Care and Education Reconciliation Act of 2010) Law text · (l)
• Pub. L. 111–152, §1004(d)(3), inserted ", or any dependent, or individual described in subparagraph (D) of paragraph (1) with respect to," after "spouse of" in introductory provisions. (Health Care and Education Reconciliation Act of 2010) Law text · (l)
• Pub. L. 111–240 inserted "for taxable years beginning before January 1, 2010, or after December 31, 2010" before period at end. (Small Business Jobs Act of 2010) Law text · (l)
• Pub. L. 111–148, §9014(a), added par. (6). (Patient Protection and Affordable Care Act) Law text · (m)

2008

• Pub. L. 110–343 added par. (5). (Emergency Economic Stabilization Act of 2008) Law text · (m)

2004

• Pub. L. 108–357, §802(b)(2), added subpar. (G). (American Jobs Creation Act of 2004) Law text · (m)
• Pub. L. 108–357, §318(b), struck out "reimbursed" before "expenses" in heading. (American Jobs Creation Act of 2004) Law text · (o)
• Pub. L. 108–357, §318(a), added par. (2) and redesignated former par. (2) as (3). (American Jobs Creation Act of 2004) Law text · (o), (3)

2003

• Pub. L. 108–121 added subsec. (p) and redesignated former subsec. (p) as (q). (Military Family Tax Relief Act of 2003) Law text · (p), (q)

1998

• Pub. L. 105–206, in last sentence, substituted "investigate or prosecute, or provide support services for the investigation or prosecution of, a Federal crime." for "investigate, or provide support services for the investigation of, a Federal crime." (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (a)
• Pub. L. 105–277 amended table in subpar. (B) generally. Prior to amendment, table read as follows: (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (l)

1997

• Pub. L. 105–34, §1204(a), inserted at end of concluding provisions "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 tem… (Taxpayer Relief Act of 1997) Law text · (a)
• Pub. L. 105–34, §934(a), amended table generally. Prior to amendment, table read as follows: (Taxpayer Relief Act of 1997) Law text · (l)
• Pub. L. 105–34, §1602(c), inserted "The preceding sentence shall be applied separately with respect to—" at end and added cls. (i) and (ii). (Taxpayer Relief Act of 1997) Law text · (l)
• Pub. L. 105–34, §1203(a), added subsec. (o) and redesignated former subsec. (o) as (p). (Taxpayer Relief Act of 1997) Law text · (o), (p)

1996

• Pub. L. 104–188, §1704(p)(3), substituted "reaquisition" for "redemption" in heading. (Small Business Job Protection Act of 1996) Law text · (k)
• Pub. L. 104–188, §1704(p)(1), substituted "the reacquisition of its stock or of the stock of any related person (as defined in section 465(b)(3)(C))" for "the redemption of its stock". (Small Business Job Protection Act of 1996) Law text · (k)
• Pub. L. 104–188, §1704(p)(2), struck out "or" at end of cl. (i), added cl. (ii), and redesignated former cl. (ii) as (iii). (Small Business Job Protection Act of 1996) Law text · (k)
• Pub. L. 104–191, §311(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: (Health Insurance Portability and Accountability Act of 1996) Law text · (l)
• Pub. L. 104–191, §322(b)(2)(B), added subpar. (C). (Health Insurance Portability and Accountability Act of 1996) Law text · (l)

1995

• Pub. L. 104–7, §1(b), substituted "30 percent" for "25 percent". Law text · (l)
• Pub. L. 104–7, §1(a), struck out par. (6) "Termination" which read as follows: "This subsection shall not apply to any taxable year beginning after December 31, 1993." Law text · (l)

1993

• Pub. L. 103–66, §13222(a), amended heading and text generally. Prior to amendment, text consisted of pars. (1) and (2) relating to deduction of ordinary and necessary expenses paid or incurred in connection with certain activities relating to congressional, State, and local legislation. · (e)
• Pub. L. 103–66, §13174(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: "Paragraph (1) shall not apply to any taxpayer who is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or of … · (l)
• Pub. L. 103–66, §13131(d)(2), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: · (l)
• Pub. L. 103–66, §13174(a)(1), substituted "December 31, 1993" for "June 30, 1992". · (l)
• Pub. L. 103–66, §13211(a), added subsec. (m). Former subsec. (m) redesignated (n). · (m)
• Pub. L. 103–66, §13442(a), added subsec. (n). Former subsec. (n) redesignated (o). · (n)
• Pub. L. 103–66, §13211(a), redesignated subsec. (m) as (n). · (n)
• Pub. L. 103–66, §13442(a), redesignated subsec. (n) as (o). · (o)

1992

• Pub. L. 102–486 inserted at end "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." · (a)

1991

• Pub. L. 102–227 substituted "June 30, 1992" for "December 31, 1991". · (l)

1990

• Pub. L. 101–508, §11111(d)(2), substituted heading for one which read: "Coordination with medical deduction" and amended text generally. Prior to amendment, text read as follows: "Any amount paid by a taxpayer for insurance to which paragraph (1) applies shall not be taken into acco… · (l)
• Pub. L. 101–508, §11410(a), substituted "December 31, 1991" for "September 30, 1990". · (l)

1989

• Pub. L. 101–239, §6202(b)(3)(A), struck out subsec. (i) which read as follows: · (i)
• Pub. L. 101–239, §7862(c)(3)(A), amended cl. (iv) as it existed prior to repeal of subsec. (k) by Pub. L. 100–647, by substituting "entitlement" for "eligibility" in heading and inserting "which does not contain any exclusion or limitation with respect to any preexisting cond… · (k)
• Pub. L. 101–140 redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: "Required coverage.—Paragraph (1) shall not apply to any taxpayer for any taxable year unless coverage is provided under 1 or more plans meeting the requirements of section 89, t… · (l)
• Pub. L. 101–239, §7107(b), added par. (5). Former par. (5) redesignated (6). · (l)
• Pub. L. 101–239, §7107(a)(1), substituted "September 30, 1990" for "December 31, 1989". · (l)
• Pub. L. 101–239, §7107(b), redesignated former par. (5) as (6). · (l)

1988

• Pub. L. 100–647, §3011(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which required plans to provide continuation coverage to certain individuals. · (i), (3)
• Pub. L. 100–647, §3011(b)(3), redesignated subsec. (l), relating to stock redemption expenses, as (k) and struck out former subsec. (k) which related to continuation coverage requirements of group health plans. · (k)
• Pub. L. 100–647, §1018(t)(7)(B), made amendment identical to Pub. L. 99–509, §9307(c)(2)(B), which amended directory language of Pub. L. 99–514, §1895(d)(5)(A), by substituting "section 162(k)(5)" for "section 162(k)(2)". See 1986 Amendment note below. · (k)
• Pub. L. 100–647, §3011(b)(3)(A), (B), redesignated subsec. (m), relating to special rules for health insurance costs of self-employed individuals, as (l). Former subsec. (l), relating to stock redemption expenses, redesignated (k). · (l)
• Pub. L. 100–647, §3011(b)(3)(B), (C), redesignated subsec. (n), relating to cross references, as (m). Former subsec. (m), relating to special rules for health insurance costs of self-employed individuals, redesignated (l). · (m)
• Pub. L. 100–647, §1011B(b)(2), redesignated subsec. (m), relating to cross references, as (n). · (m)
• Pub. L. 100–647, §1011B(b)(3), inserted "derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established" after "401(c))". · (m)
• Pub. L. 100–647, §1011B(b)(1), added par. (4) and redesignated former par. (4) as (5). · (m), (5)
• Pub. L. 100–647, §3011(b)(3)(C), redesignated subsec. (n) as (m). · (n)
• Pub. L. 100–647, §1011B(b)(2), redesignated subsec. (m), relating to cross references, as (n). · (n)

1986

• Pub. L. 99–272, §10001(d), substituted "Coverage relating to end stage renal disease" for "General rule" in heading. · (i)
• Pub. L. 99–272, §10001(a), added par. (2) and redesignated former par. (2) as (3). · (i), (3)
• Pub. L. 99–272, §10001(c), added subsec. (k). Former subsec. (k) redesignated (l). · (k)
• Pub. L. 99–514, §1895(d)(1)(A), inserted "If coverage under the plan is modified for any group of similarly situated beneficiaries, the coverage shall also be modified in the same manner for all individuals who are qualified beneficiaries under the plan pursuant to this subsectio… · (k)
• Pub. L. 99–514, §1895(d)(2)(A), substituted "Maximum required period" for "Maximum period" in heading and amended text generally. Prior to amendment, text read as follows: "In the case of— · (k)
• Pub. L. 99–509, §9501(b)(1)(A)(i), inserted "(other than a qualifying event described in paragraph (3)(F))". · (k)
• Pub. L. 99–509, §9501(b)(1)(A)(ii)–(iv), added subcl. (III), redesignated former subcl. (III) as (IV), and inserted "or (3)(F)". · (k), (IV)
• Pub. L. 99–514, §1895(d)(3)(A), inserted "The payment of any premium (other than any payment referred to in the last sentence of subparagraph (C)) shall be considered to be timely if made within 30 days after the date due or within such longer period as applies to or under t… · (k)
• Pub. L. 99–514, §1895(d)(4)(A)(iii), substituted "Group health plan coverage" for "Reemployment" in heading. · (k)
• Pub. L. 99–514, §1895(d)(4)(A)(ii), substituted "covered under any other group health plan (as an employee or otherwise)" for "a covered employee under any other group health plan". · (k)
• Pub. L. 99–509, §9501(b)(2)(A), inserted "in the case of a qualified beneficiary other than a qualified beneficiary described in paragraph (7)(B)(iv),". · (k)
• Pub. L. 99–514, §1895(d)(4)(A)(i), struck out cl. (v), remarriage of spouse, which read as follows: "In the case of an individual who is a qualified beneficiary by reason of being the spouse of a covered employee, the date on which the beneficiary remarries and becomes covered… · (k)
• Pub. L. 99–509, §9501(a)(1), added subpar. (F) and concluding provisions. · (k)
• Pub. L. 99–514, §1895(d)(5)(A), as amended by Pub. L. 99–509, §9307(c)(2)(B), and Pub. L. 100–647, §1018(t)(7)(B), inserted "of continuation coverage" and "If there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate selec… · (k)
• Pub. L. 99–509, §9501(d)(1), substituted "(D), or (F)" for "or (D)". · (k)
• Pub. L. 99–514, §1895(d)(6)(A), inserted "within 60 days after the date of the qualifying event". · (k)
• Pub. L. 99–509, §9501(d)(1), substituted "(D), or (F)" for "or (D)". · (k)
• Pub. L. 99–514, §1895(d)(7), added cl. (iii). · (k)
• Pub. L. 99–509, §9501(c)(1), added cl. (iv). · (k)
• Pub. L. 99–514, §613(a), added subsec. (l). Former subsec. (l) redesignated (m). · (l)
• Pub. L. 99–272, §10001(c), redesignated former subsec. (k), relating to cross references, as (l). · (l)
• Pub. L. 99–514, §1161(a), added subsec. (m) relating to special rules for health insurance costs of self-employed individuals, and further directed that this section be amended "by redesignating subsection (n) as subsection (m)", which directory language could not be executed because t… · (m)
• Pub. L. 99–514, §613(a), redesignated subsec. (l), relating to cross references, as (m). · (m)

1984

• Pub. L. 98–369, §2354(d), substituted "section 213(d)" for "section 213(e)". · (i)
• Pub. L. 98–573 added subsec. (j). Former subsec. (j) redesignated (k). · (j)
• Pub. L. 98–369, §512(b), added par. (3). · (j)
• Pub. L. 98–573 redesignated former subsec. (j) as (k). · (k)

1982

• Pub. L. 97–216 inserted provisions under which amounts expended by Members of Congress within each taxable year for living expenses shall not be deductible for income tax purposes in excess of $3,000. · (a)
• Pub. L. 97–248, §288(a), substituted "is unlawful under the Foreign Corrupt Practices Act of 1977" for "would be unlawful under the laws of the United States if such laws were applicable to such payment and to such official or employee" after "government, the payment", and "(or is u… · (c)
• Pub. L. 97–248, §128(b)(2), redesignated subsec. (i), relating to State legislators' travel expenses away from home, as (h). Former subsec. (h), relating to group health plans, redesignated (i). · (h)
• Pub. L. 97–248, §128(b)(2), redesignated former subsec. (h), relating to group health plans, as (i). Former subsec. (i), relating to State legislators' travel expenses away from home, redesignated (h). Former subsec. (i), relating to cross references, redesignated (j). · (i)
• Pub. L. 97–248, §128(b)(1), redesignated former subsec. (i), relating to cross references, as (j). · (j)

1981

• Pub. L. 97–35 added subsec. (h) relating to group health plans. Former subsec. (h), as added by Pub. L. 97–34 and relating to State legislators' travel expenses away from home, redesignated (i). See 1982 Amendment note above. · (h)
• Pub. L. 97–34 added subsec. (h) relating to State legislators' travel expenses away from home. Former subsec. (h), relating to cross references, redesignated (i). See 1982 Amendment note above. · (h)
• Pub. L. 97–35 redesignated former subsec. (h), as added by Pub. L. 97–34 and relating to State legislators' travel expenses away from home, as (i). See 1982 Amendment note above. · (i)
• Pub. L. 97–34 redesignated former subsec. (h), relating to cross references, as (i). See 1982 Amendment note above. · (i)

1976

• Pub. L. 94–455, §1901(c)(4), struck out reference to Territory in provisions following par. (3). · (a)
• Pub. L. 94–455, §1906(b)(13)(A), struck out in pars. (1) and (2) "or his delegate" after "Secretary". · (c)

1971

• Pub. L. 92–178, §310(a)(2), substituted "Illegal bribes, kickbacks, and other payments" for "Bribes and illegal kickbacks" in heading. · (c)
• Pub. L. 92–178, §310(a)(1), substituted provisions respecting "Other illegal payments" for former provisions on "Other bribes or kickbacks" reading "If in a criminal proceeding a taxpayer is convicted of making a payment (other than a payment described in paragraph (1) which is an i… · (c)
• Pub. L. 92–178, §310(a)(1), substituted provisions respecting kickbacks, rebates, and bribes under medicare and medicaid for former statute of limitations provisions. · (c)

1969

• Pub. L. 91–172, §902(b), designated existing provisions as par. (1), extended the applicability of nondeductible expenses for payments to any official or employee of any government, or of any agency or instrumentality of any government, and added pars. (2) and (3). · (c)
• Pub. L. 91–172, §902(a), added subsecs. (f) and (g). Former subsec. (f) redesignated (h). · (f), (g)
• Pub. L. 91–172, §§516(c)(2)(A), 902(a), redesignated former subsec. (f) as (h), substituted "(1) For" for "For", and inserted reference to section 1253 for special rule relating to the treatment of payments by a transferee of a franchise, trademark, or trade name. · (h)

1962

• Pub. L. 87–834, §4(b), substituted "(including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances)" for "including the entire amount expended for meals and lodging)". · (a)
• Pub. L. 87–834, §3(a), added subsec. (e) and redesignated former subsec. (e) as (f). · (e), (f)

1960

• Pub. L. 86–779, §7(b), inserted "the dollar limitations," after "the percentage limitations,". · (b)
• Pub. L. 86–779, §8(a), added subsec. (d) and redesignated former subsec. (d) as (e). · (d), (e)

1958

• Pub. L. 85–866, §5(a), added subsec. (c) and redesignated former subsec. (c) as (d). · (c), (d)