(1) In accordance with 26 U.S.C. §212, an individual is allowed a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year:
- (a) for the production or collection of income;
- (b) for the management, conservation, or maintenance of property held for the production of income; or
- (c) in connection with the determination, collection, or refund of any tax.
- (2) The provisions and limitations of 26 U.S.C. §274 also apply to deductions for travel, entertainment, and meals.
- (3) Except as otherwise provided in Alabama law, nontrade or nonbusiness expenses are not deductible.
- (4) For interpretation of federal statutes adopted by the Alabama Legislature, see Rule 810-3-1.1-.01, Operating Rules.
Author: Roger Frost, Sharon Norman, Hugh Kirkland, James Lucy, Lee Johnson, Betty Knowles
Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-18-15.
History: Adopted September 30, 1982. Amended: Filed July 27, 1988; May 15, 1992. Repealed and New Rule: Filed December 14, 1999; effective January 18, 2000.