[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: 26CFR1.274-6]

[Page 634-635]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.274-6  Expenditures deductible without regard to trade or business 
or other income producing activity.

    The provisions of Sec. Sec. 1.274-1 through 1.274-5, inclusive, do 
not apply to any deduction allowable to the taxpayer without regard to 
its connection with the taxpayer's trade or business or other income 
producing activity. Examples of such items are interest, taxes such as 
real property taxes, and casualty losses. Thus, if a taxpayer owned a 
fishing camp, the taxpayer could still deduct mortgage interest and real 
property taxes in full even if deductions for its use are not allowable 
under section 274(a) and Sec. 1.274-2. In the case of a taxpayer which 
is not an individual, the provisions of this section shall be applied as 
if it were an individual. Thus, if a corporation sustains a casualty 
loss on an entertainment facility used in its trade or business, it

[[Page 635]]

could deduct the loss even though deductions for the use of the facility 
are not allowable.

[T.D. 8051, 50 FR 36576, Sept. 9, 1985]