[Code of Federal Regulations]
[Title 26, Volume 10]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.912-1]

[Page 31]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.912-1  Exclusion of certain cost-of-living allowances.

    (a) Amounts received by Government civilian personnel stationed 
outside the continental United States as cost-of-living allowances in 
accordance with regulations approved by the President are, by the 
provisions of section 912(1), excluded from gross income. Such 
allowances shall be considered as retaining their characteristics under 
section 912(1) notwithstanding any combination thereof with any other 
allowance. For example, the cost-of-living portion of a ``living and 
quarters allowance'' would be excluded from gross income whether or not 
any other portion of such allowance is excluded from gross income.
    (b) For purposes of section 912(1), the term ``continental United 
States'' includes only the 48 States existing on February 25, 1944 (the 
date of the enactment of the Revenue Act of 1943 (58 Stat. 21)) and the 
District of Columbia.