La. Revenue and Taxation § 47:75

Current with changes from the 2024 Legislative Session

Section 47:75 - Items not deductible; unpaid expenses and interest

In computing net income, no deduction shall be allowed under R.S. 47:62, relating to expenses incurred, or under R.S. 47:54, relating to interest accrued:

(1) If such expenses or interest are not paid within the taxable year or within two and one-half months after the close thereof; and

(2) If, by reason of the method of accounting of the person to whom the payment is to be made, the amount thereof is not, unless paid, includable in the gross income of such person for the taxable year in which or with which the taxable year of the taxpayer ends; and

(3) If, at the close of the taxable year of the taxpayer or at any time within two and one-half months thereafter, the relationship between the taxpayer and the person to whom the payment is to be made is one of the following:

(a) between members of a family;

(b) between an individual and a corporation more than fifty per centum (50%) in value of the outstanding stock of which is owned directly or indirectly by or for such individual;

(c) between two corporations more than fifty per centum (50%) in value of the outstanding stock of each of which is owned directly or indirectly by or for the same individual;

(d) between a grantor and a fiduciary of any trust;

(e) between the fiduciary of a trust and the fiduciary of other trusts, if the same person is a grantor with respect to each trust;

(f) between a fiduciary of a trust and beneficiary of such trust.

La. Revenue and Taxation § 47:75