Page:United States Statutes at Large Volume 68A.djvu/58

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INTERNAL REVENUE CODE OF 1954

if such trade or business does not consist of the performance of services by the taxpayer as an employee. (2) TRADE AND BUSINESS DEDUCTIONS OF EMPLOYEES.— (A) REIMBURSED EXPENSES.—The deductions allowed by part

VI (sec. 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. (B) E X P E N S E S FOR TRAVEL AWAY FROM HOME.—The deductions allowed by part VI (sec. 161 and following) which consist of expenses of travel, meals, and lodging while away from home, paid or incurred by the taxpayer in connection with the performance by him of services as an employee. (C) TRANSPORTATION E X P E N S E S. — The deductions allowed by part VI (sec. 161 and following) which consist of expenses, of transportation paid or incurred by the taxpayer in connection with the performance by him of services as an employee. (D) OUTSIDE SALESMEN,—The deductions allowed by part VI (sec. 161 and following) which are attributable to a trade or business carried on by the taxpayer, if such trade or business consists of the performance of services by the taxpayer as an employee and if such trade or business is to solicit, away from the employer's place of business, business for the employer. (3) LONG-TERM CAPITAL GAINS.—The deduction allowed by section 1202. (4) LOSSES FROM SALE OR EXCHANGE OF PROPERTY.—The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of property. (5) DEDUCTIONS ATTRIBUTABLE TO RENTS AND ROYALTIES.—The

deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for production of income), and by section 611 (relating to depletion) which are attributable to property held for the production of rents or royalties. (6) CERTAIN DEDUCTIONS OF LIFE TENANTS AND INCOME BENEFICIARIES OF PROPERTY.—In the case of a life tenant of property, or

an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by section 611. Nothing in this section shall permit the same item to be deducted more than once. SEC. 63. TAXABLE INCOME DEFINED. (a) GENERAL RULE. — E x c e p t as provided in subsection (b), for

purposes of this subtitle the term "taxable income" means gross income, minus the deductions allowed by this chapter, other than the standard deduction allowed by part IV (sec. 141 and following). (b) INDIVIDUALS ELECTING STANDARD DEDUCTION. — I n the case of an individual electing under section 144 to use the standard deduction provided in part IV (sec. 141 and following), for purposes of this subtitle the term "taxable income" means adjusted gross income, minus— (1) such standard deduction, and (2) the deductions for personal exemptions provided in section 151. §62(1)

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