PRIA, Government Policy, Made Personal

Summary

You cannot take a tax deduction for money you pay that ends up helping a political party or candidate. That includes payment for advertising in a party convention program or in publications if any part of the money goes to a party or candidate, payment for admission to dinners or programs when some proceeds go to a party or candidate, and payment for admission to inaugural events or similar events tied to a party or candidate. A "political party" means the party itself, its National, State, or local committees, or any group that accepts contributions or spends money to try to influence elections. Money counts as going to a candidate only if it can be used to help that person’s campaign and it is not ordinary business income to the candidate (except income from holding office). See section 274 for related rules about entertainment expenses.

Title 26, §276

Internal Revenue Code, Source: USLM XML via OLRC

(a)Disallowance of deduction

No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred for— (1)

(2)admission to any dinner or program, if any part of the proceeds of such dinner or program directly or indirectly inures (or is intended to inure) to or for the use of a political party or a political candidate, or

(3)admission to an inaugural ball, inaugural gala, inaugural parade, or inaugural concert, or to any similar event which is identified with a political party or a political candidate.

(b)Definitions

For purposes of this section

(1) Political party

(2)Proceeds inuring to or for the use of political candidates

Proceeds shall be treated as inuring to or for the use of a political candidate only if—

(A)such proceeds may be used directly or indirectly for the purpose of furthering his candidacy for selection, nomination, or election to any elective public office, and

(B)such proceeds are not received by such candidate in the ordinary course of a trade or business (other than the trade or business of holding elective public office).

(c)Cross reference

For disallowance of certain entertainment, etc., expenses, see section 274.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1974—Subsecs. (c), (d). Pub. L. 93–443 struck out subsec. (c) relating to advertising in a convention program of a national political convention, and redesignated subsec. (d) as (c). 1968—Subsecs. (c), (d). Pub. L. 90–364 added subsec. (c) and redesignated former subsec. (c) as (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1974 AmendmentAmendment by Pub. L. 93–443 applicable with respect to taxable years beginning after Dec. 31, 1974, see section 410(c)(1) of Pub. L. 93–443, set out as a note under section 30101 of Title 52, Voting and Elections.

Effective Date

of 1968 Amendment Pub. L. 90–364, title I, § 108(b), June 28, 1968, 82 Stat. 269, provided that: “The

Amendments

made by subsection (a) [amending this section] shall apply with respect to amounts paid or incurred on or after January 1, 1968.”

Effective Date

Pub. L. 89–368, title III, § 301(c), Mar. 15, 1966, 80 Stat. 67, provided that: “The

Amendments

made by subsections (a) and (b) [enacting this section] shall apply to taxable years beginning after

December 31, 1965, but only with respect to amounts paid or incurred after the date of the enactment of this Act [Mar. 15, 1966].” Program Advertising for Presidential and Vice-Presidential Nominating Conventions Pub. L. 90–346,

June 18, 1968, 82 Stat. 183, provided for advertising in a convention program of a national political convention, applicable with respect to amounts paid or incurred on or after Jan. 1, 1968, prior to repeal by Pub. L. 93–625, § 10(g), Jan. 3, 1975, 88 Stat. 2119.

§276 Certain Indirect Contributions to Political Parties

Summary

Title 26, §276

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Effective Date

Amendments

Citations & Metadata