Page:United States Statutes at Large Volume 90 Part 2.djvu/104

 9 0 STAT. 1572

PUBLIC LAW 94-455—OCT. 4, 1976 "(g)

26 USC 280A note. 26 USC 274.

SPECIAL RULE FOR CERTAIN R E N T A L U S E. — Notwithstanding

any other provision of this section or section 183, if a dwelling u n i t is used during the taxable year by the taxpayer as a residence and such dwelling unit is actually rented for less than 15 days during the taxable year, then— " (1) no deduction otherwise allowable under this chapter because of the rental use of such dwelling unit shall be allowed, and " (2) the income derived from such use for the taxable year shall not be included in the gross income of such taxpayer under section 6 1. " (b) CLERICAL AMENDMENT. — The table of sections for such part IX is amended by adding at the end thereof the following new item: "SEC. 2S0A. Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc." (c) EFFECTIVE D A T E. — The amendments made by this section shall apply to taxable years beginning after December 31, 1975. SEC. 602. DEDUCTIONS FOR ATTENDING FOREIGN CONVENTIONS. (a) NONDEDUCTIBILITY OF CERTAIN EXPENSES.—Section 274 (relat-

ing to disallowance of certain entertainment, etc., expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: "(h)

FOREIGN CONVENTIONS.— " (1) DEDUCTIONS W I T H RESPECT TO NOT MORE THAN 2 FOREIGN

CONVENTIONS PER YEAR ALLOWED.—If any individual a t t e n d s more

than 2 foreign conventions during his taxable year— " (A) he shall select not more than 2 of such conventions to be taken into account for purposes of this subsection, and " (B) no deduction allocable to his attendance at any foreign convention during such taxable year (other than a foreign convention selected under subparagraph (A)) shall be allowed under section 162 or 212. "(2)

DEDUCTIBLE TRANSPORTATION COST CANNOT EXCEED COST OF

COACH OR ECONOMY AIR FARE.—In the case of any foreign convention, no deduction for the expenses of transportation outside the United States to and from the site of such convention shall be allowed under section 162 or 212 in an amount which exceeds the lowest coach or economy rate a t the time of travel charged by a commercial airline for transportation to and from such site during the calendar month in which such convention begins. I f there is no such coach or economy rate, the preceding sentence shall be applied by substituting 'first class' for 'coach or economy'. " (3) TRANSPORTATION COSTS DEDUCTIBLE I N FULL ONLY I F AT LEAST ONE-HALF OF THE DAYS ARE DEVOTED TO BUSINESS RELATED

ACTIVITIES.—In the case of any foreign convention, a deduction for the full expenses of transportation (determined after the application of paragraph (2)) to and from the site of such convention shall be allowed only if more than one-half of the total days of the t r i p, excluding the days of transportation to and from the site of such convention, are devoted to business related activities. I f less than one-half of the total days of the t r i p, excluding the days of transportation to and from the site of the convention, are devoted to business related activities, no deduction for the expenses of transportation shall be allowed which exceeds the percentage of the days of the t r i p devoted to business related activities.

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