U.S Code last checked for updates: Nov 26, 2024
§ 67.
2-percent floor on miscellaneous itemized deductions
(a)
General rule
(b)
Miscellaneous itemized deductions
For purposes of this section, the term “miscellaneous itemized deductions” means the itemized deductions other than—
(1)
the deduction under section 163 (relating to interest),
(2)
the deduction under section 164 (relating to taxes),
(3)
the deduction under section 165(a) for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d),
(4)
the deductions under section 170 (relating to charitable, etc., contributions and gifts) and section 642(c) (relating to deduction for amounts paid or permanently set aside for a charitable purpose),
(5)
the deduction under section 213 (relating to medical, dental, etc., expenses),
(6)
any deduction allowable for impairment-related work expenses,
(7)
the deduction under section 691(c) (relating to deduction for estate tax in case of income in respect of the decedent),
(8)
any deduction allowable in connection with personal property used in a short sale,
(9)
the deduction under section 1341 (relating to computation of tax where taxpayer restores substantial amount held under claim of right),
(10)
the deduction under section 72(b)(3) (relating to deduction where annuity payments cease before investment recovered),
(11)
the deduction under section 171 (relating to deduction for amortizable bond premium), and
(12)
the deduction under section 216 (relating to deductions in connection with cooperative housing corporations).
(c)
Disallowance of indirect deduction through pass-thru entity
(1)
In general
(2)
Treatment of publicly offered regulated investment companies
(A)
In general
(B)
Publicly offered regulated investment companies
For purposes of this subsection—
(i)
In general
The term “publicly offered regulated investment company” means a regulated investment company the shares of which are—
(I)
continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended (15 U.S.C. 77a to 77aa)),
(II)
regularly traded on an established securities market, or
(III)
held by or for no fewer than 500 persons at all times during the taxable year.
(ii)
Secretary may reduce 500 person requirement
(3)
Treatment of certain other entities
Paragraph (1) shall not apply—
(A)
with respect to cooperatives and real estate investment trusts, and
(B)
except as provided in regulations, with respect to estates and trusts.
(d)
Impairment-related work expenses
For purposes of this section, the term “impairment-related work expenses” means expenses—
(1)
of a handicapped individual (as defined in section 190(b)(3)) for attendant care services at the individual’s place of employment and other expenses in connection with such place of employment which are necessary for such individual to be able to work, and
(2)
with respect to which a deduction is allowable under section 162 (determined without regard to this section).
(e)
Determination of adjusted gross income in case of estates and trusts
For purposes of this section, the adjusted gross income of an estate or trust shall be computed in the same manner as in the case of an individual, except that—
(1)
the deductions for costs which are paid or incurred in connection with the administration of the estate or trust and which would not have been incurred if the property were not held in such trust or estate, and
(2)
the deductions allowable under sections 642(b), 651, and 661,
shall be treated as allowable in arriving at adjusted gross income. Under regulations, appropriate adjustments shall be made in the application of part I of subchapter J of this chapter to take into account the provisions of this section.
(f)
Coordination with other limitation
(g)
Suspension for taxable years 2018 through 2025
(Added Pub. L. 99–514, title I, § 132(a), Oct. 22, 1986, 100 Stat. 2113; amended Pub. L. 100–647, title I, § 1001(f), title IV, § 4011(a), Nov. 10, 1988, 102 Stat. 3351, 3655; Pub. L. 101–239, title VII, § 7814(f), Dec. 19, 1989, 103 Stat. 2414; Pub. L. 103–66, title XIII, § 13213(c)(2), Aug. 10, 1993, 107 Stat. 474; Pub. L. 105–277, div. J, title IV, § 4004(b)(1), Oct. 21, 1998, 112 Stat. 2681–910; Pub. L. 106–554, § 1(a)(7) [title III, § 319(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–646; Pub. L. 115–97, title I, § 11045(a), Dec. 22, 2017, 131 Stat. 2088.)
cite as: 26 USC 67