Chapter : Important Internal Revenue Code Sections Important Internal Revenue Code Sections
Important Internal Revenue Code Sections The United States income tax was authorized by the Sixteenth Amendment to the U.S. Constitution on March 1, 1913. The Internal Revenue Code (IRC) is the detailed tax law as passed by the U.S. Congress. Some of the most important sections (adapted from Raabe, et.al. Federal Tax Research, 10th Ed.) of the code are summarized below, along with the chapter (and, where appropriate, specific learning objective numbers) of the text in which the section is covered.
CODE SECTION
CONTENTS
TEXT CHAPTER
1
Individual Tax Rates
Chapter 1 (LO 1.5 and Appendix A)
11
Corporate Tax Rates
Chapters 1 & 11 (LO 1.2 and LO 11.1)
36B
Premium Tax Credit
Chapters 6 (LO 6.4)
61
Definition of Gross Income
Chapter 2 (LO 2.1)
62
Deductions for Gross Income
Chapters 3 & 4
162
Trade or Business Deductions Chapters 3 & 4
163
Interest Deduction
Chapter 5 (LO 5.3)
164
Deduction for Taxes
Chapter 5 (LO 5.2)
165
Losses
Chapters 3 & 8 (LO 3.8 and LO 8.3)
167, 168, 179
Depreciation, Election to
Chapter 7 (LOs 7.3, 7.4, 7.5,
Expense
7.6 and 7.7)
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CODE SECTION
CONTENTS
TEXT CHAPTER
212
Production of Income
Chapter 5 (LO 5.6)
Expenses
351
Forming a Corporation
Chapter 11 (LO 11.7)
469
Passive Activities
Chapter 4 (LO 4.2)
721
Forming a Partnership
Chapter 10 (LO 10.2)
904
Foreign Tax Credit
Chapter 6 (LO 6.6)
1245
Depreciation Recapture
Chapter 8 (LO 8.7)
5000A
Minimum Essential Care
Chapter 6 (LO 6.4)
6662
Penalties for Tax Filings
Chapter 12 (LO 12.3)
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