976
PUBLIC LAW 87-834-OCT. 16, 1962
[76 STAT.
ices for another person (whether or not such other person is his employer), under a reimbursement or other expense allowance arrangement with such other person, but this paragraph shall apply— " (A) where the services are performed for an employer, only if the employer has not treated such expenses in the manner provided in paragraph (3), or " (B) where the services are performed for a person other than an employer, only if the taxpayer accounts (to the extent provided by subsection (d)) to such person. "(5)
26 USC 267.
RECREATIONAL, ETC., EXPENSES FOR EMPLOYEES.—Expenses
for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees (other than employees who are officers, shareholders or other owners, or highly compensated employees). For purposes of this paragraph, an individual owning less than a 10-percent interest in the taxpayer's trade or business shall not be considered a shareholder or other owner, and for such purposes an individual shall be treated as owning any interest owned by a member of his family (within the meaning of section 267(c)(4)). "(6)
EMPLOYEE,
STOCKHOLDER, ETC., BUSINESS
MEETINGS.—
Expenses incurred by a taxpayer which are directly related to business meetings of his employees, stockholders, agents, or directors. "(7)
26 USC 501.
related and necessary to attendance at a business meeting or convention of any organization described in section 501(c)(6) (relating to business leagues, chambers of commerce, real estate boards, and boards of trade) and exempt from taxation under section 501(a). "(8) ITEMS AVAILABLE TO PUBLIC.—Expenses for goods, services, and facilities made available by the taxpayer to the general public. " (9) ENTERTAINMENT SOLD TO CUSTOMERS.—Expenses for goods or services (including the use of facilities) which are sold by the taxpayer in a bona fide transaction for an adequate and full consideration in money or money's worth. For purposes of this subsection, any item referred to in subsection (a) shall be treated as an expense. "(f) INTEREST, TAXES, CASUALTY LOSSES, ETC.—This section shall not apply to any deduction allowable to the taxpayer without regard to its connection with his trade or business (or with his income-producing activity). I n the case of a taxpayer which is not an individual, the preceding sentence shall be applied as if it were an individual. "(g)
Ante, p. 974.
26 USC 162.
MEETINGS or BUSINESS LEAGUES, ETC.—Expenses directly
TREATMENT OF ENTERTAINMENT, ETC.. T Y P E FACILITY.—For
purposes of this chapter, if deductions are disallowed under subsection (a) with respect to any portion of a facility, such portion shall be treated as an asset which is used for personal, living, and family purposes (and not as an asset used in the trade or business). " (h) REGULATORY AUTHORITY.—The Secretary or his delegate shall prescribe such regulations as he may deem necessary to carry out the purposes of this section, including regulations prescribing whether subsection (a) or subsection (b) applies in cases where both such subsections would otherwise apply." (2) The table of sections for such part IX is amended by adding at the end thereof the following: "See. 274. Disallowance of certain entertainment, etc., expenses." (b) TRAVELING EXPENSES.—Section. 162(a)(2) (relating to travel-
ing expenses) is amended by striking out "(including the entire
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