§163. Interest — Inbound Citations
26 U.S.C. § 163
Cited by 53 provisions in release 119-102.
Citations to 26 U.S.C. § 163 as a whole
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(ii) The amount not taken into account in computing modified taxable income by reason of clause (i) shall be reduced under rules similar to the rules under section 163(j)(5)(B) (as in effect before the date of the enactment of the Tax Cuts and Jobs Act).
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(1) the deduction under section 163 (relating to interest),
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(i) deduction allowable under section 163 (relating to interest),
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(2) the interest allowable as a deduction to the corporation under section 163 which is paid or incurred by the corporation on its indebtedness contracted—(A) in the acquisition, construction, alteration, rehabilitation, or maintenance of the houses or apartment building, or(B) in the acquisition of the land on which the houses (or apartment building) are situated.
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(II) in addition to the deductions described in such clause, there shall also be taken into account the amount of the deductions which are allowable for amounts paid or credited to the accounts of depositors or holders of accounts as dividends or interest on their deposits or withdrawable accounts under section 163 or 591.
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(b) The amount of any deduction specified in section 162, 163, 164, 212, or 611 (relating to deductions for expenses, interest, taxes, and depletion) or credit specified in section 27 (relating to foreign tax credit), in respect of a decedent which is not properly allowable to the decedent in respect of the taxable period in which falls the date of his death, or a prior period, shall be allowed:(1) In the case of a deduction specified in section 162, 163, 164, or 212 and a credit specified in section 27, in the taxable year when paid—(A) to the estate of the decedent; except that(B) if the estate of the decedent is not liable to discharge the obligation to which the deduction or credit relates, to the person who, by reason of the death of the decedent or by bequest, devise, or inheritance acquires, subject to such obligation, from the decedent an interest in property of the decedent.(2) In the case of the deduction specified in section 611, to the person described in subsection (a)(1)(A), (B), or (C) who, in the manner described therein, receives the income to which the deduction relates, in the taxable year when such income is received.
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(1) In the case of a deduction specified in section 162, 163, 164, or 212 and a credit specified in section 27, in the taxable year when paid—(A) to the estate of the decedent; except that(B) if the estate of the decedent is not liable to discharge the obligation to which the deduction or credit relates, to the person who, by reason of the death of the decedent or by bequest, devise, or inheritance acquires, subject to such obligation, from the decedent an interest in property of the decedent.
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(1) In applying section 163 (relating to deduction for interest), no deduction shall be allowed for interest in respect of items described in section 807(c).
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(2) all interest, as provided in section 163;
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(ii) does not include interest and taxes of the kind deductible under section 163 or 164 or any amount allowable as a deduction under section 216(a).
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(1) for purposes of section 163, in the manner provided by section 1272(a) (determined without regard to paragraph (7) thereof), and
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(1) If any taxpayer claims a deduction under section 163 for qualified residence interest on any seller-provided financing, such taxpayer shall include on the return claiming such deduction the name, address, and TIN of the person to whom such interest is paid or accrued.
Citations to §163(a)
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(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).
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(1) The term “start-up expenditure” means any amount—(A) paid or incurred in connection with—(i) investigating the creation or acquisition of an active trade or business, or(ii) creating an active trade or business, or(iii) any activity engaged in for profit and for the production of income before the day on which the active trade or business begins, in anticipation of such activity becoming an active trade or business, and(B) which, if paid or incurred in connection with the operation of an existing active trade or business (in the same field as the trade or business referred to in subparagraph (A)), would be allowable as a deduction for the taxable year in which paid or incurred.
Citations to §163(b)
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(3) In the case of the purchaser, the tax treatment of amounts paid on account of the sale or exchange of property shall be made without regard to this section if any such amounts are treated under section 163(b) as if they included interest.
Citations to §163(c)
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(d) For treatment of rentals under redeemable ground rents as interest, see section 163(c).
Citations to §163(d)
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(B) In determining the amount allowable as a deduction for interest, subsections (d) and (h) of section 163 shall apply, except that—(i) in lieu of the exception under section 163(h)(2)(D), the term “personal interest” shall not include any qualified housing interest (as defined in subsection (e)),(ii) interest on any specified private activity bond (and any amount treated as interest on a specified private activity bond under section 57(a)(5)(B)), and any deduction referred to in section 57(a)(5)(A), shall be treated as includible in gross income (or as deductible) for purposes of applying section 163(d),(iii) in lieu of the exception under section 163(d)(3)(B)(i), the term “investment interest” shall not include any qualified housing interest (as defined in subsection (e)), and(iv) the adjustments of this section and sections 57 and 58 shall apply in determining net investment income under section 163(d).
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(ii) interest on any specified private activity bond (and any amount treated as interest on a specified private activity bond under section 57(a)(5)(B)), and any deduction referred to in section 57(a)(5)(A), shall be treated as includible in gross income (or as deductible) for purposes of applying section 163(d),
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(iv) the adjustments of this section and sections 57 and 58 shall apply in determining net investment income under section 163(d).
Citations to §163(d)(3)(B)(i)
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(iii) in lieu of the exception under section 163(d)(3)(B)(i), the term “investment interest” shall not include any qualified housing interest (as defined in subsection (e)), and
Citations to §163(d)(4)
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(i) The term “net investment income” has the meaning given such term by section 163(d)(4).
Citations to §163(d)(4)(B)
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(i) Qualified dividend income shall not include any amount which the taxpayer takes into account as investment income under section 163(d)(4)(B).
Citations to §163(d)(4)(B)(iii)
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(2) For purposes of this subsection, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii).
Citations to §163(e)
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(2) In the case of any debt instrument, if—(A) such instrument—(i) is incurred in connection with the acquisition or carrying of personal use property, and(ii) has original issue discount (determined after the application of paragraph (1)), and(B) the obligor under such instrument uses the cash receipts and disbursements method of accounting,notwithstanding section 163(e), the original issue discount on such instrument shall be deductible only when paid.
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(d) The Secretary may prescribe regulations providing that where, by reason of varying rates of interest, put or call options, indefinite maturities, contingent payments, assumptions of debt instruments, or other circumstances, the tax treatment under this subpart (or section 163(e)) does not carry out the purposes of this subpart (or section 163(e)), such treatment shall be modified to the extent appropriate to carry out the purposes of this subpart (or section 163(e)).
Citations to §163(f)
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(B) The term “registered form” has the same meaning as when used in section 163(f).
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(m) The earnings and profits of any corporation shall not be decreased by any interest with respect to which a deduction is not or would not be allowable by reason of section 163(f), unless at the time of issuance the issuer is a foreign corporation that is not a controlled foreign corporation (within the meaning of section 957) and the issuance did not have as a purpose the avoidance of section 163(f) of this subsection1
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(7) For purposes of this subsection, the term “registered form” has the same meaning given such term by section 163(f).
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(7) For purposes of this subsection, the term “registered form” has the meaning given such term by section 163(f).
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(2) The term “registered form” has the same meaning as when used in section 163(f).
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(A) The term “registration-required obligation” has the same meaning as when used in section 163(f), except that such term shall not include any obligation which—(i) is required to be registered under section 149(a), or(ii) is described in subparagraph (B).
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(2) The term “registered form” has the same meaning as when used in section 163(f).
Citations to §163(f)(2)
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(A) The term “registration-required obligation” has the meaning given to such term by section 163(f)(2).
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(1) The term “registration-required obligation” has the meaning given to such term by section 163(f)(2).
Citations to §163(h)
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(B) In determining the amount allowable as a deduction for interest, subsections (d) and (h) of section 163 shall apply, except that—(i) in lieu of the exception under section 163(h)(2)(D), the term “personal interest” shall not include any qualified housing interest (as defined in subsection (e)),(ii) interest on any specified private activity bond (and any amount treated as interest on a specified private activity bond under section 57(a)(5)(B)), and any deduction referred to in section 57(a)(5)(A), shall be treated as includible in gross income (or as deductible) for purposes of applying section 163(d),(iii) in lieu of the exception under section 163(d)(3)(B)(i), the term “investment interest” shall not include any qualified housing interest (as defined in subsection (e)), and(iv) the adjustments of this section and sections 57 and 58 shall apply in determining net investment income under section 163(d).
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(B) Subparagraph (A) shall not apply to any qualified residence interest (within the meaning of section 163(h)).
Citations to §163(h)(2)(D)
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(i) in lieu of the exception under section 163(h)(2)(D), the term “personal interest” shall not include any qualified housing interest (as defined in subsection (e)),
Citations to §163(h)(3)
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(1) The term “qualified housing interest” means interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued during the taxable year on indebtedness which is incurred in acquiring, constructing, or substantially improving any property which—(A) is the principal residence (within the meaning of section 121) of the taxpayer at the time such interest accrues, or(B) is a qualified dwelling which is a qualified residence (within the meaning of section 163(h)(5)).Such term also includes interest on any indebtedness resulting from the refinancing of indebtedness meeting the requirements of the preceding sentence; but only to the extent that the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness immediately before the refinancing.
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(3) The term “qualified housing interest” includes interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued on indebtedness which—(A) was incurred by the taxpayer before July 1, 1982, and(B) is secured by property which, at the time such indebtedness was incurred, was—(i) the principal residence (within the meaning of section 121) of the taxpayer, or(ii) a qualified dwelling used by the taxpayer (or any member of his family (within the meaning of section 267(c)(4))).
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(7) The passive activity loss of a taxpayer shall be computed without regard to qualified residence interest (within the meaning of section 163(h)(3)).
Citations to §163(h)(3)(B)
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(2) For purposes of this section, the term “qualified principal residence indebtedness” means acquisition indebtedness (within the meaning of section 163(h)(3)(B), applied by substituting “$750,000 ($375,000” for “$1,000,000 ($500,000” in clause (ii) thereof and determined without regard to the substitution described in section 163(h)(3)(F)(i)(II)) with respect to the principal residence of the taxpayer.
Citations to §163(h)(3)(F)(i)(II)
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(2) For purposes of this section, the term “qualified principal residence indebtedness” means acquisition indebtedness (within the meaning of section 163(h)(3)(B), applied by substituting “$750,000 ($375,000” for “$1,000,000 ($500,000” in clause (ii) thereof and determined without regard to the substitution described in section 163(h)(3)(F)(i)(II)) with respect to the principal residence of the taxpayer.
Citations to §163(h)(4)
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(1) Terms used in this section which are also used in paragraph (4) of section 163(h) shall have the same meaning as when used in such paragraph.
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(f) No return shall be required under this section for any period to which section 163(h)(4) does not apply.
Citations to §163(h)(4)(A)
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(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).
Citations to §163(h)(4)(B)
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(2) The term “specified passenger vehicle loan” means the indebtedness described in section 163(h)(4)(B) with respect to any applicable passenger vehicle.
Citations to §163(h)(5)
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(B) is a qualified dwelling which is a qualified residence (within the meaning of section 163(h)(5)).
Citations to §163(j)
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(3) For purposes of applying paragraph (1), in the case of a taxpayer to which section 163(j) applies for the taxable year, the reduction in the amount of interest for which a deduction is allowed by reason of such subsection shall be treated as allocable first to interest paid or accrued to persons who are not related parties with respect to the taxpayer and then to such related parties.
Citations to §163(j)(2)
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(20) The carryover of disallowed business interest described in section 163(j)(2) to taxable years ending after the date of distribution or transfer.
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(3) The term “pre-change loss” shall include any carryover of disallowed interest described in section 163(j)(2) under rules similar to the rules of paragraph (1).
Citations to §163(j)(7)(A)(iv)
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(A) any property which is primarily used in a trade or business described in clause (iv) of section 163(j)(7)(A), or
Citations to §163(j)(7)(C)
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(G) any property with a recovery period of 10 years or more which is held by an electing farming business (as defined in section 163(j)(7)(C)),
Citations to §163(j)(9)
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(B) any property used in a trade or business that has had floor plan financing indebtedness (as defined in paragraph (9) of section 163(j)), if the floor plan financing interest related to such indebtedness was taken into account under paragraph (1)(C) of such section.