The amount of the depreciation deduction for any taxable year for any passenger automobile shall not exceed-
Except as provided in clause (ii), the unrecovered basis of any passenger automobile shall be treated as an expense for the 1st taxable year after the recovery period. Any excess of the unrecovered basis over the limitation of clause (ii) shall be treated as an expense in the succeeding taxable year.
The amount treated as an expense under clause (i) for any taxable year shall not exceed $5,760.
No amount shall be allowable as a deduction by reason of this subparagraph with respect to any property for any taxable year unless a depreciation deduction would be allowable with respect to such property for such taxable year.
For purposes of this subtitle, any amount allowable as a deduction by reason of this subparagraph shall be treated as a depreciation deduction allowable under section 168.
This subsection shall be applied before-
If any listed property is not predominantly used in a qualified business use for any taxable year, the deduction allowed under section 168 with respect to such property for such taxable year and any subsequent taxable year shall be determined under section 168(g) (relating to alternative depreciation system).
If-
then any excess depreciation shall be included in gross income for the taxable year referred to in clause (ii), and the depreciation deduction for the taxable year referred to in clause (ii) and any subsequent taxable years shall be determined under section 168(g) (relating to alternative depreciation system).
For purposes of subparagraph (A), the term "excess depreciation" means the excess (if any) of-
For purposes of this subsection, property shall be treated as predominantly used in a qualified business use for any taxable year if the business use percentage for such taxable year exceeds 50 percent.
This section shall not apply to any listed property leased or held for leasing by any person regularly engaged in the business of leasing such property.
For purposes of determining the amount allowable as a deduction under this chapter for rentals or other payments under a lease for a period of 30 days or more of listed property, only the allowable percentage of such payments shall be taken into account.
For purposes of paragraph (2), the allowable percentage shall be determined under tables prescribed by the Secretary. Such tables shall be prescribed so that the reduction in the deduction under paragraph (2) is substantially equivalent to the applicable restrictions contained in subsections (a) and (b).
In determining the term of any lease for purposes of paragraph (2), the rules of section 168(i)(3)(A) shall apply.
Under regulations prescribed by the Secretary, rules similar to the rules of subsection (b)(3) shall apply to any lessee to which paragraph (2) applies.
For purposes of this section-
Any deduction allowable under section 179 with respect to any listed property shall be subject to the limitations of subsections (a) and (b), and the limitation of paragraph (3) of this subsection, in the same manner as if it were a depreciation deduction allowable under section 168.
Solely for purposes of determining the amount of the depreciation deduction for subsequent taxable years, if less than 100 percent of the use of any listed property during any taxable year is use in a trade or business (including the holding for the production of income), all of the use of such property during such taxable year shall be treated as use so described.
Any employee use of listed property shall not be treated as use in a trade or business for purposes of determining the amount of any depreciation deduction allowable to the employee (or the amount of any deduction allowable to the employee for rentals or other payments under a lease of listed property) unless such use is for the convenience of the employer and required as a condition of employment.
For purposes of subparagraph (A), the term "employee use" means any use in connection with the performance of services as an employee.
Except as provided in subparagraph (B), the term "listed property" means-
Except to the extent provided in regulations, clause (ii) of subparagraph (A) shall not apply to any property substantially all of the use of which is in a trade or business of providing to unrelated persons services consisting of the transportation of persons or property for compensation or hire.
Except as provided in subparagraph (B), the term "passenger automobile" means any 4-wheeled vehicle-
In the case of a truck or van, clause (ii) shall be applied by substituting "gross vehicle weight" for "unloaded gross vehicle weight".
The term "passenger automobile" shall not include-
The term "business use percentage" means the percentage of the use of any listed property during any taxable year which is a qualified business use.
Except as provided in subparagraph (C), the term "qualified business use" means any use in a trade or business of the taxpayer.
The term "qualified business use" shall not include-
Clause (i) shall not apply with respect to any aircraft if at least 25 percent of the total use of the aircraft during the taxable year consists of qualified business use not described in clause (i).
For purposes of this paragraph-
The term "5-percent owner" means any person who is a 5-percent owner with respect to the taxpayer (as defined in section 416(i)(1)(B)(i)).
The term "related person" means any person related to the taxpayer (within the meaning of section 267(b)).
In the case of any passenger automobile placed in service after 2018, subsection (a) shall be applied by increasing each dollar amount contained in such subsection by the automobile price inflation adjustment for the calendar year in which such automobile is placed in service. Any increase under the preceding sentence shall be rounded to the nearest multiple of $100 (or if the increase is a multiple of $50, such increase shall be increased to the next higher multiple of $100).
For purposes of this paragraph-
The automobile price inflation adjustment for any calendar year is the percentage (if any) by which-
The term "C-CPI-U automobile component" means the automobile component of the Chained Consumer Price Index for All Urban Consumers (as described in section 1(f)(6)).
For purposes of subsection (a)(1), the term "unrecovered basis" means the adjusted basis of the passenger automobile determined after the application of subsection (a) and as if all use during the recovery period were use in a trade or business (including the holding of property for the production of income).
All taxpayers holding interests in any passenger automobile shall be treated as 1 taxpayer for purposes of applying subsection (a) to such automobile, and the limitations of subsection (a) shall be allocated among such taxpayers in proportion to their interests in such automobile.
For purposes of subsection (a)(1) any property acquired in a nonrecognition transaction shall be treated as a single property originally placed in service in the taxable year in which it was placed in service after being so acquired.
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations with respect to items properly included in, or excluded from, the adjusted basis of any listed property.
26 U.S.C. § 280F
Inflation Adjusted Items for Certain Calendar YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table below.
EDITORIAL NOTES
AMENDMENTS2017-Subsec. (a)(1)(A)(i). Pub. L. 115-97, §13202(a)(1)(A), substituted "$10,000" for "$2,560". Subsec. (a)(1)(A)(ii). Pub. L. 115-97, §13202(a)(1)(B), substituted "$16,000" for "$4,100".Subsec. (a)(1)(A)(iii). Pub. L. 115-97, §13202(a)(1)(C), substituted "$9,600" for "$2,450".Subsec. (a)(1)(A)(iv). Pub. L. 115-97, §13202(a)(1)(D), substituted "$5,760" for "$1,475". Subsec. (a)(1)(B)(ii). Pub. L. 115-97, §13202(a)(2)(A), substituted "$5,760" for "$1,475" in heading and text. Subsec. (d)(4)(A)(iv), (v). Pub. L. 115-97, §13202(b)(1), redesignated cl. (v) as (iv) and struck out former cl. (iv) which read as follows: "any computer or peripheral equipment (as defined in section 168(i)(2)(B)), 'and' ".Subsec. (d)(4)(B), (C). Pub. L. 115-97, §13202(b)(2), redesignated subpar. (C) as (B) and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: "The term 'listed property' shall not include any computer or peripheral equipment (as so defined) used exclusively at a regular business establishment and owned or leased by the person operating such establishment. For purposes of the preceding sentence, any portion of a dwelling unit shall be treated as a regular business establishment if (and only if) the requirements of section 280A(c)(1) are met with respect to such portion."Subsec. (d)(7)(A). Pub. L. 115-97, §13202(a)(2)(B)(i), substituted "2018" for "1988".Subsec. (d)(7)(B). Pub. L. 115-97, §11002(d)(8), amended subpar. (B) generally. Prior to amendment, subpar. (B) related to automobile price inflation adjustment.Subsec. (d)(7)(B)(i)(II). Pub. L. 115-97, §13202(a)(2)(B) (ii), substituted "2017" for "1987".2014-Subsec. (a)(1)(C). Pub. L. 113-295, §221(a) (34)(E), struck out subpar. (C) which related to special rules for certain automobiles modified to be propelled by a clean burning fuel and for purpose built passenger vehicles that were placed in service between Aug. 5, 1997, and Jan. 1, 2007.Subsec. (d)(8), (10). Pub. L. 113-295, §220(j), substituted "subsection (a)(1)" for "subsection (a)(2)".2010-Subsec. (d)(4)(A). Pub. L. 111-240 inserted " 'and' " at end of clause (iv), redesignated clause (vi) as (v), and struck out former cl. (v) which read as follows: "any cellular telephone (or other similar telecommunications equipment), and". 2002-Subsec. (a)(1)(C)(iii). Pub. L. 107-147 added cl. (iii).1998-Subsec. (a)(1)(C)(ii). Pub. L. 105-206 substituted "subparagraphs (A) and (B)" for "subparagraph (A)".1997-Subsec. (a)(1)(C). Pub. L. 105-34 added subpar. (C).1996-Subsec. (a). Pub. L. 104-188 struck out "investment tax credit and" after "amount of" in heading.1990- Pub. L. 101-508, §11813(b) (13)(E), struck out "investment tax credit and" after "Limitation on" in section catchline.Subsec. (a)(1). Pub. L. 101-508, §11813(b)(13)(A)(i), redesignated par. (2) as (1) and struck out former par. (1) "Investment tax credit" which read as follows: "The amount of the credit determined under section 46(a) for any passenger automobile shall not exceed $675."Subsec. (a)(2). Pub. L. 101-508, §11813(b)(13)(A)(i), redesignated par. (3) as (2). Former par. (2) redesignated (1).Subsec. (a)(2)(B). Pub. L. 101-508, §11813(b)(13)(A)(ii), struck out "the credit determined under section 46(a) or" after "the amount of".Subsec. (a)(3). Pub. L. 101-508, §11813(b)(13)(A)(i), redesignated par. (3) as (2). Subsec. (a)(4). Pub. L. 101-508, §11813(b)(13)(A)(i), struck out par. (4) "Special rule where election of reduced credit in lieu of the basis adjustment" which read as follows: "In the case of any election under section 48(q)(4) with respect to any passenger automobile, the limitation of paragraph (1) applicable to such passenger automobile shall be 2/3 of the amount which would be so applicable but for this paragraph."Subsec. (b). Pub. L. 101-508, §11813(b)(13)(B), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) "Investment tax credit" which read as follows: "For purposes of this subtitle, any listed property shall not be treated as section 38 property for any taxable year unless such property is predominantly used in a qualified business use for such taxable year."Subsec. (c)(1). Pub. L. 101-508, §11813(b)(13)(C), struck out "credits and" after "Lessor's" in heading.Subsec. (d)(3)(A). Pub. L. 101-508, §11813(b)(13)(D), struck out "the amount of any credit allowable under section 38 to the employee or" after "of determining". 1989-Subsec. (d)(4)(A)(v), (vi). Pub. L. 101-239 added cl. (v) and redesignated former cl. (v) as (vi). 1988-Subsec. (b)(3)(B)(i). Pub. L. 100-647, §1018(u)(3), substituted "depreciation deductions" for "recovery deductions".Subsec. (d)(1). Pub. L. 100-647, §1002(b)(2), substituted "subsections (a) and (b), and the limitation of paragraph (3) of this subsection," for "subsections (a) and (b)". Subsec. (d)(3)(A). Pub. L. 100-647, §1002(a)(10), substituted "depreciation deduction" for "recovery deduction". 1986-Subsec. (a)(2)(A). Pub. L. 99-514, §201(d)(4)(A)(i), (K), substituted "depreciation deduction" for "recovery deduction" in introductory provisions and substituted cls. (i) to (iv) for former cls. (i) and (ii) which read as follows:"(i) $3,200 for the first taxable year in the recovery period, and"(ii) $4,800 for each succeeding taxable year in the recovery period." Subsec. (a)(2)(B). Pub. L. 99-514, §201(d)(4)(A)(ii), (K), substituted "$1,475" for "$4,800" in heading and text of cl. (ii), and "depreciation deduction" for "recovery deduction" in heading and text of cl. (iv).Subsec. (a)(3)(B). Pub. L. 99-514, §201(d)(4)(K), substituted "depreciation deduction" for "recovery deduction" in two places.Subsec. (b)(2). Pub. L. 99-514, §201(d)(4)(J), substituted "section 168(g) (relating to alternative depreciation system)" for "the straight line method over the earnings and profits life for such property".Subsec. (b)(3)(A). Pub. L. 99-514, §201(d)(4)(B), (K), substituted "depreciation deduction" for "recovery deduction" and "section 168(g) (relating to alternative depreciation system)" for "the straight line method over the earnings and profits life" in closing provisions.Subsec. (b)(4). Pub. L. 99-514, §201(d)(4)(C), in amending par. (4) generally, struck out heading "Definitions", redesignated as par. (4) former subpar. (A) heading and text, substituted "For purposes of this section, property" for "Property", and struck out former subpar. (B) definition of straight line method over earnings and profits life.Subsec. (c)(4). Pub. L. 99-514, §201(d)(4)(D), substituted "section 168(i)(3)(A)" for "section 168(j)(6)(B)".Subsec. (d)(1). Pub. L. 99-514, §201(d)(4)(E), substituted "depreciation deduction" for "recovery deduction".Subsec. (d)(2). Pub. L. 99-514, §1812(e)(5), substituted "is use described in" for "is not use described in". Pub. L. 99-514, §201(d)(4)(F), substituted "depreciation deduction" for "recovery deduction" and "use in a trade or business (including the holding for the production of income)" for "use described in section 168(c)(1) (defining recovery property)".Subsec. (d)(3)(A). Pub. L. 99-514, §1812(e)(2), inserted "(or the amount of any deduction allowable to the employee for rentals or other payments under a lease of listed property)".Subsec. (d)(4)(A)(iv). Pub. L. 99-514, §201(d)(4)(G), substituted "section 168(i)(2)(B)" for "section 168(j)(5)(D)".Subsec. (d)(4)(B). Pub. L. 99-514, §1812(e)(3), inserted "and owned or leased by the person operating such establishment".Subsec. (d)(4)(C). Pub. L. 99-514, §1812(e)(4), added subpar. (C).Subsec. (d)(5)(A). Pub. L. 99-514, §1812(e)(1)(A), (C), substituted "unloaded gross vehicle weight" for "gross vehicle weight" in cl. (ii) and inserted at end "In the case of a truck or van, clause (ii) shall be applied by substituting 'gross vehicle weight' for 'unloaded gross vehicle weight'."Subsec. (d)(8). Pub. L. 99-514, §201(d)(4)(H), amended par. (8) generally. Prior to amendment, par. (8) read as follows: "For purposes of subsection (a)(2), the term "unrecovered basis" means the excess (if any) of-"(A) the unadjusted basis (as defined in section 168(d)(1)(A)) of the passenger automobile, over"(B) the amount of the recovery deductions which would have been allowable for taxable years in the recovery period determined after the application of subsection (a) and as if all use during the recovery period were use described in section 168(c)(1)." Subsec. (d)(10). Pub. L. 99-514, §201(d)(4)(I), struck out ", notwithstanding any regulations prescribed under section 168(f)(7)," after "For purposes of subsection (a)(2)". 1985-Subsec. (a)(1). Pub. L. 99-44, §4(a)(1), substituted "$675" for "$1,000".Subsec. (a)(2)(A)(i). Pub. L. 99-44, §4(a)(2)(A), substituted "$3,200" for "$4,000". Subsec. (a)(2)(A)(ii), (B)(ii). Pub. L. 99-44, §4(a)(2)(B), substituted "$4,800" for "$6,000" wherever appearing in text and heading.Subsec. (d)(7)(A). Pub. L. 99-44, §4(b)(1), inserted "placed in service after 1988" after "passenger automobile". Subsec. (d)(7)(B)(i). Pub. L. 99-44, §4(b)(3), struck out last sentence which directed that in the case of calendar year 1984, the automobile price inflation adjustment would be zero.Subsec. (d)(7)(B)(i)(II). Pub. L. 99-44, §4(b)(2), substituted "1987" for "1983".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2017 AMENDMENT Amendment by section 11002(d)(8) of Pub. L. 115-97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115-97, set out as a note under section 1 of this title. Pub. L. 115-97, §13202(c), Dec. 22, 2017, 131 Stat. 2109, provided that: "The amendments made by this section [amending this section] shall apply to property placed in service after December 31, 2017, in taxable years ending after such date."
EFFECTIVE DATE OF 2014 AMENDMENT Amendment by section 221(a)(34)(E) of Pub. L. 113-295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113-295, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-240, §2043(b), Sept. 27, 2010, 124 Stat. 2560, provided that: "The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2009."
EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107-147, §602(c), Mar. 9, 2002, 116 Stat. 59, provided that: "The amendments made by this section [amending this section, section 30 of this title, and provisions set out as a note under this section] shall apply to property placed in service after December 31, 2001."
EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105-206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such amendment relates, see section 6024 of Pub. L. 105-206, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105-34, §971(b), Aug. 5, 1997, 111 Stat. 897, as amended by Pub. L. 107-147, §602(b)(2), Mar. 9, 2002, 116 Stat. 59, provided that: "The amendments made by this section [amending this section] shall apply to property placed in service after the date of enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104-188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104-188, set out as a note under section 38 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(b)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 101-508, set out as a note under section 45K of this title.
EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101-239, §7643(b), Dec. 19, 1989, 103 Stat. 2381, provided that: "The amendment made by subsection (a) [amending this section] shall apply to property placed in service or leased in taxable years beginning after December 31, 1989."
EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 201(d)(4) of Pub. L. 99-514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see sections 203 and 204 of Pub. L. 99-514, set out as a note under section 168 of this title.Amendment by section 201(d)(4) of Pub. L. 99-514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99-514, set out as a note under section 46 of this title.Amendment by section 1812(e)(1)(A), (C), (2)-(5) of Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
EFFECTIVE DATE OF 1985 AMENDMENT Pub. L. 99-44, §6(e), May 24, 1985, 99 Stat. 79, provided that:"(1) Except as provided in paragraph (2), the amendments made by section 4 [amending this section] shall apply to- "(A) property placed in service after April 2, 1985, in taxable years ending after such date, and"(B) property leased after April 2, 1985, in taxable years ending after such date."(2) The amendments made by section 4 [amending this section] shall not apply to any property-"(A) acquired by the taxpayer pursuant to a binding contract in effect on April 1, 1985, and at all times thereafter, but only if the property is placed in service before August 1, 1985, or "(B) of which the taxpayer is the lessee, but only if the lease is pursuant to a binding contract in effect on April 1, 1985, and at all times thereafter, and only if the taxpayer first uses such property under the lease before August 1, 1985."
EFFECTIVE DATEPub. L. 98-369, div. A, title I, §179(d), July 18, 1984, 98 Stat. 719, provided that:"(1) IN GENERAL.-"(A) Except as provided in subparagraph (B), the amendments made by subsections (a) and (c) [enacting this section] shall apply to-"(i) property placed in service after June 18, 1984, in taxable years ending after such date, and"(ii) property leased after June 18, 1984, in taxable years ending after such date."(B) The amendments made by subsections (a) and (c) shall not apply to any property-"(i) acquired by the taxpayer pursuant to a binding contract in effect on June 18, 1984, and at all times thereafter (or under construction on such date) but only if the property is placed in service before January 1, 1985 (January 1, 1987, in the case of 15-year real property), or"(ii) of which the taxpayer is the lessee but only if the lease is pursuant to a binding contract in effect on June 18, 1984, and at all times thereafter and only if the taxpayer first uses such property under the lease before January 1, 1985 (January 1, 1987, in the case of 15-year real property).For purposes of the preceding sentence, the term '15-year real property' includes 18-year real property."(2) COMPLIANCE PROVISIONS.-The amendments made by subsection (b) [amending sections 274, 6653, and 6695 of this title] shall apply to taxable years beginning after December 31, 1984."
SAVINGS PROVISIONFor provisions that nothing in amendment by Pub. L. 101-508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101-508, set out as a note under section 45K of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101-1147 and 1171-1177] or title XVIII [§§1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
INFLATION ADJUSTED ITEMS FOR CERTAIN YEARS Provisions relating to inflation adjustment of items in this section for certain years were contained in the following: 2023-Revenue Procedure 2023-14. 2022-Revenue Procedure 2022-17. 2021-Revenue Procedure 2021-31. 2020-Revenue Procedure 2020-37. 2019-Revenue Procedure 2019-26. 2018-Revenue Procedure 2018-25. 2017-Revenue Procedure 2017-29. 2016-Revenue Procedure 2016-23. 2015-Revenue Procedure 2015-19. 2014-Revenue Procedure 2014-21. 2013-Revenue Procedure 2013-21. 2012-Revenue Procedure 2012-23. 2011-Revenue Procedure 2011-21. 2010-Revenue Procedure 2010-18. 2009-Revenue Procedure 2009-24. 2008-Revenue Procedure 2008-22. 2007-Revenue Procedure 2007-30. 2006-Revenue Procedure 2006-18. 2005-Revenue Procedure 2005-13. 2004-Revenue Procedure 2004-20. 2003-Revenue Procedure 2003-75. 2002-Revenue Procedure 2002-14. 2001-Revenue Procedure 2001-19. 2000-Revenue Procedure 2000-18. 1999-Revenue Procedure 99-14. 1998-Revenue Procedures 98-24 and 98-30. 1997-Revenue Procedure 97-20. 1996-Revenue Procedure 96-25.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- nonrecognition transaction
- The term "nonrecognition transaction" means any disposition of property in a transaction in which gain or loss is not recognized in whole or in part for purposes of subtitle A.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.