Sec. 1405. Repeal of deduction for taxes not paid or accrued in a trade or business
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/bill/113/hr/1/ih/section-1405A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(b)of section 164 is amended by striking paragraphs
(5)and
(6)and inserting the following new paragraph: In the case of a taxpayer other than a corporation— paragraphs
(1)and
(2)of subsection
(a)shall only apply to taxes which are paid or accrued in carrying on a trade or business or an activity described in section 212, and paragraph
(3)of subsection
(a)shall not apply to State and local taxes. . Section 164(a) is amended by striking paragraph (6). Section 216(a) is amended by striking proportionate share of— and all that follows and inserting proportionate share of the interest allowable as a deduction to the corporation under section 163 which is paid or incurred by the corporation on its indebtedness contracted— in the acquisition, construction, alteration, rehabilitation, or maintenance of the houses or apartment building, or in the acquisition of the land on which the houses (or apartment building) are situated. . Section 216(b)(3)(B)(i) is amended— by striking a share of such corporation’s real estate taxes described in subsection (a)(1) or in subclause (I), and by striking of such taxes, or of such interest, in subclause
(II)and inserting of such interest . Section 216(d) is amended by striking subsections (a)(1) and (a)(2) and inserting subsection
(a). Section 274(f) is amended by striking in the heading thereof. taxes, Section 280A(b) is amended by striking in the heading thereof. taxes, Section 911(c)(3)(A)(ii) is amended— by striking and taxes , and by striking or 164 . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.