[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.162-15]

[Page 786]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.162-15  Contributions, dues, etc.

    (a) Contributions to organizations described in section 170--(1) In 
general. No deduction is allowable under section 162(a) for a 
contribution or gift by an individual or a corporation if any part 
thereof is deductible under section 170. For example, if a taxpayer 
makes a contribution of $5,000 and only $4,000 of this amount is 
deductible under section 170(a) (whether because of the percentage 
limitation under either section 170(b) (1) or (2), the requirement as to 
time of payment, or both) no deduction is allowable under section 162(a) 
for the remaining $1,000.
    (2) Scope of limitations. The limitations provided in section 162(b) 
and this paragraph apply only to payments which are in fact 
contributions or gifts to organizations described in section 170. For 
example, payments by a transit company to a local hospital (which is a 
charitable organization within the meaning of section 170) in 
consideration of a binding obligation on the part of the hospital to 
provide hospital services and facilities for the company's employees are 
not contributions or gifts within the meaning of section 170 and may be 
deductible under section 162(a) if the requirements of section 162(a) 
are otherwise satisfied.
    (b) Other contributions. Donations to organizations other than those 
described in section 170 which bear a direct relationship to the 
taxpayer's business and are made with a reasonable expectation of a 
financial return commensurate with the amount of the donation may 
constitute allowable deductions as business expenses, provided the 
donation is not made for a purpose for which a deduction is not 
allowable by reason of the provisions of paragraph (b)(1)(i) or (c) of 
Sec. 1.162-20. For example, a transit company may donate a sum of money 
to an organization (of a class not referred to in section 170) intending 
to hold a convention in the city in which it operates, with a reasonable 
expectation that the holding of such convention will augment its income 
through a greater number of people using its transportation facilities.
    (c) Dues. Dues and other payments to an organization, such as a 
labor union or a trade association, which otherwise meet the 
requirements of the regulations under section 162, are deductible in 
full. For limitations on the deductibility of dues and other payments, 
see paragraph (b) and (c) of Sec. 1.162-20.
    (d) Cross reference. For provisions dealing with expenditures for 
institutional or ``good will'' advertising, see Sec. 1.162-20.

[T.D. 6819, 30 FR 5580, Apr. 20, 1965]