Page 167

TITLE 26-INTERNAL REVENUE CODE (6) Deductions for out.of-pocket expenditures No deduction shall be allowed under this section for an out-of-pocket expenditure made by any person on behalf of an organiza- tion described in subsection (c) (other than an organization described in section 501(h)(5) (relating to churches, etc.)) if the expenditure is made for the purpose of influencing legisla- tion (within the meaning of section 501(c)(3)). (g) Amounts paid to maintain certain students as members of taxpayer's household (1) In general Subject to the limitations provided by para- graph (2), amounts paid by the taxpayer to maintain an individual (other than a depen- dent, as defined in section 152, or a relative of the taxpayer) as a member of his household during the period that such individual is- (A) a member of the taxpayer's household under a written agreement between the tax- payer and an organization described in paragraph (2), (3), or (4) of subsection (c) to implement a program of the organization to provide educational opportunities for pupils or students in private homes, and (B) a full-time pupil or student in the twelfth or any lower grade at an education- al organization described in section 170(b)(1)(A)(ii) located in the United States, shall be treated as amounts paid for the use of the organization. (2) Limitations (A) Amount Paragraph (1) shall apply to amounts paid within the taxable year only to the extent that such amounts do not exceed $50 multi- plied oy the number of full calendar months during the taxable year which fall within the period described in paragraph (1). For purposes of the preceding sentence, if 15 or more days of a calendar month fall within such period such month shall be con- sidered as a full calendar month. (B) Compensation or reimbursement Paragraph (1) shall not apply to any amount paid by the taxpayer within the taxable year if the taxpayer receives any money or other property as compensation or reimbursement for maintaining the indi- vidual in his household during the period described in paragraph (1). (3) Relative defined For purposes of paragraph (1), the term "relative of the taxpayer" means an individ- ual who, with respect to the taxpayer, bears any of the relationships described in para- graphs (1) through (8) of section 152(a). (4) No other amount allowed as deduction No deduction shall be allowed under subsec- tion (a) for any amount paid by a taxpayer to maintain an individual as a member of his household under a program described in para- graph (1)(A) except as provided in this sub- section. (h) Disallowance of deductions in certain cases For disallowance of deductions for contributions to or for the use of communist controlled organizations, see section 11(a) of the Internal Security Act of 1950 (50 U.S.C. 790). (I) Other cross references (1) For charitable contributions of estates and trists, see section 642(c). (2) For nondeductibility of contributions by common trust funds, see section 584. (3) For charitable contributions of partners, see sec. tion 702. (4) For charitable contributions of nonresident aliens, see section 873. (5) For treatment of gifts for benefit of or use in con- nection with the Naval Academy as gifts to or for the use of the United States, see section 6973 of title 10, United States Code. (6) For treatment of gifts accepted by the Secretary of State under the Foreign Service Act of 1946 as gifts to or for the use of the United States, see section 1021(e) of that Act (22 U.S.C. 809(e)). (7) For treatment of gifts of money accepted by the At. torney General for credit to the "Commissary Funds Federal Prisons" as gifts to or for the use of the United States, see section 2 of the Act of May 15, 1952, as amended by the Act of July 9, 1952 (31 U.S.C. 725s-4). (Aug. 16, 1954, ch. 736, 68A Stat. 58; Aug. 7, 1956, ch. 1031, § 1, 70 Stat. 1117; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 10(a), 11, 12(a), 72 Stat. 1609, 1610; Sept. 14, 1960, Pub. L. 86-779, § 7(a), . 74 Stat. 1002; Oct. 16, 1962, Pub. L. 87-834, § 13(d), 76 Stat. 1034; Oct. 23, 1962, Pub. L. 87- 858, § 2(a), (b), 76 Stat. 1134; Feb. 26, 1964, Pub. L. 88-272, title II, §§ 209(a), (b), (c)(1), (d)(1), (e), 231(b)(1), 78 Stat.43, 45-47, 105; Sept. 12, 1966, Pub. L. 89-570, § 1(b)(1), 80 Stat. 762; Dec. 30, 1969, Pub. L. 91-172, title I, § 101(j)(2), title II, § 201(a)(1), (2)(A), (h)(1), 83 Stat. 526, 549, 558, 565; Oct. 4, 1976, Pub. L. 94-455, title II, § 205(c)(1)(A), title XIII, §§ 1307(c), (d)(1)(B)(i), 1313(b)(1), title XIX, §§ 1901(a)(28), (b)(8)(A), 1906(b)(13)(A), title XXI, §§ 2124(e)(1), 2135(a), 90 Stat. 1535, 1726, 1727, 1730, 1768, 1794, 1834, 1919, 1928.) AMENDMENT OF SUBSEC. (b)2) Subsec. (b)(2) of this section was amended by Pub. L. 94-455, title X, § 1052(c)(2), (d), Oct. 4, 1976, 90 Stat. 1648, applicable with respect to taxable years beginning after Dec. 31, 1979, by striking out paragraph (D) and redesignating paragraph (E) as (D). REFERENCES IN TEXT The Federal Food, Drug, and Cosmetic Act, as amended, referred to in subsec. (e)(3)(A)(iv), Is act June 25, 1938, ch. 675, 52 Stat. 1040, as amended, which is classified generally to chapter 9 (Q 301 et seq.) of Title 21, Food and Drugs. For complete classifica- tion of this Act to the Code, see section 301 of Title 21 and Tables volume. The Foreign Service Act of 1946, referred to in subsec. (i)(6), is act Aug. 13, 1946, ch. 957, titles I to X, 60 Stat. 999, as amended, which is classified principal- ly to chapter 14 (§ 801 et seq.) of Title 22, Foreign Re- lations and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under section 801 of Title 22 and Tables volume. AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (b)(1)(A)(vii). Pub. L. 94-455, § 1901(a)(28)(A)(iii), substituted "subparagraph (D)" for "subparagraph (E)" following "described in". Subsec. (b)(1)(B)(ii). Pub. L. 94-455, § 1901(a)(28)(A)(iv), substituted "subparagraph (C)" for "subparagraph (D)" following "without regard to". Page 167 § 170