[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.262-1]

[Page 419-421]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.262-1  Personal, living, and family expenses.

    (a) In general. In computing taxable income, no deduction shall be 
allowed, except as otherwise expressly provided in chapter 1 of the 
Code, for personal, living, and family expenses.
    (b) Examples of personal, living, and family expenses. Personal, 
living, and family expenses are illustrated in the following examples:

[[Page 420]]

    (1) Premiums paid for life insurance by the insured are not 
deductible. See also section 264 and the regulations thereunder.
    (2) The cost of insuring a dwelling owned and occupied by the 
taxpayer as a personal residence is not deductible.
    (3) Expenses of maintaining a household, including amounts paid for 
rent, water, utilities, domestic service, and the like, are not 
deductible. A taxpayer who rents a property for residential purposes, 
but incidentally conducts business there (his place of business being 
elsewhere) shall not deduct any part of the rent. If, however, he uses 
part of the house as his place of business, such portion of the rent and 
other similar expenses as is properly attributable to such place of 
business is deductible as a business expense.
    (4) Losses sustained by the taxpayer upon the sale or other 
disposition of property held for personal, living, and family purposes 
are not deductible. But see section 165 and the regulations thereunder 
for deduction of losses sustained to such property by reason of 
casualty, etc.
    (5) Expenses incurred in traveling away from home (which include 
transportation expenses, meals, and lodging) and any other 
transportation expenses are not deductible unless they qualify as 
expenses deductible under section 162, Sec. 1.162-2, and paragraph (d) 
of Sec. 1.162-5 (relating to trade or business expenses), section 170 
and paragraph (a)(2) of Sec. 1.170-2 or paragraph (g) of Sec. 1.170A-1 
(relating to charitable contributions), section 212 and Sec. 1.212-1 
(relating to expenses for production of income), section 213(e) and 
paragraph (e) of Sec. 1.213-1 (relating to medical expenses) or section 
217(a) and paragraph (a) of Sec. 1.217-1 (relating to moving expenses). 
The taxpayer's costs of commuting to his place of business or employment 
are personal expenses and do not qualify as deductible expenses. The 
costs of the taxpayer's lodging not incurred in traveling away from home 
are personal expenses and are not deductible unless they qualify as 
deductible expenses under section 217. Except as permitted under section 
162, 212, or 217, the costs of the taxpayer's meals not incurred in 
traveling away from home are personal expenses.
    (6) Amounts paid as damages for breach of promise to marry, and 
attorney's fees and other costs of suit to recover such damages, are not 
deductible.
    (7) Generally, attorney's fees and other costs paid in connection 
with a divorce, separation, or decree for support are not deductible by 
either the husband or the wife. However, the part of an attorney's fee 
and the part of the other costs paid in connection with a divorce, legal 
separation, written separation agreement, or a decree for support, which 
are properly attributable to the production or collection of amounts 
includible in gross income under section 71 are deductible by the wife 
under section 212.
    (8) The cost of equipment of a member of the armed services is 
deductible only to the extent that it exceeds nontaxable allowances 
received for such equipment and to the extent that such equipment is 
especially required by his profession and does not merely take the place 
of articles required in civilian life. For example, the cost of a sword 
is an allowable deduction in computing taxable income, but the cost of a 
uniform is not. However, amounts expended by a reservist for the 
purchase and maintenance of uniforms which may be worn only when on 
active duty for training for temporary periods, when attending service 
school courses, or when attending training assemblies are deductible 
except to the extent that nontaxable allowances are received for such 
amounts.
    (9) Expenditures made by a taxpayer in obtaining an education or in 
furthering his education are not deductible unless they qualify under 
section 162 and Sec. 1.162-5 (relating to trade or business expenses).
    (c) Cross references. Certain items of a personal, living, or family 
nature are deductible to the extent expressly provided under the 
following sections, and the regulations under those sections:
    (1) Section 163 (interest).
    (2) Section 164 (taxes).
    (3) Section 165 (losses).
    (4) Section 166 (bad debts).
    (5) Section 170 (charitable, etc., contributions and gifts).
    (6) Section 213 (medical, dental, etc., expenses).

[[Page 421]]

    (7) Section 214 (expenses for care of certain dependents).
    (8) Section 215 (alimony, etc., payments).
    (9) Section 216 (amounts representing taxes and interest paid to 
cooperative housing corporation).
    (10) Section 217 (moving expenses).

[T.D. 6500, 25 FR 11402, Nov. 26, 1960, as amended by T.D. 6796, 30 FR 
1041, Feb. 2, 1965; T.D. 6918, 32 FR 6681, May 2, 1967; T.D. 7207, 37 FR 
20795, Oct. 4, 1972]