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TITLE 26-INTERNAL REVENUE CODE taxpayer accounts (to the extent provided by subsection (d)) to such person. (5) Recreational, etc., expenses for employees Expenses for recreational, social, or similar activities (including facilities therefor) pri- marily for the benefit of employees (other than employees who are officers, sharehold- ers or other owners, or highly compensated employees). For purposes of this paragraph, an individual owning less than a 10-percent interest in the taxpayer's trade or business shall not be considered a shareholder or other oner, and for such purposes an individual shall be treated as owning any interest owned by a member of his family (within the mean- ing of section 267(c)(4)). (6) Employees, stockholder, etc., business meetings Expenses incurred by a taxpayer which are directly related to business meetings of his employees, stockholders, agents, or directors. (7) Meetings of business leagues, etc. Expenses directly related and necessary to attendance at a business meeting or conven- tion of any organization described in section 501(c)(6) (relating to business leagues, cham- bers of commerce, real estate boards, and boards of trade) and exempt from taxation under section 501(a). (8) Items available to public Expenses for goods, services, and facilities made available by the taxpayer to the general public. (9) Entertainment sold to customers Expenses for goods or services (including the use of facilities) which are sold by the taxpayer in a bona fide transaction for an adequate and full consideration in money or money's worth. For purposes of this subsection, any item re- ferred to in subsection (a) shall be treated as an expense. (f) Interest, taxes, casualty losses, etc. This section shall not apply to any deduction allowable to the taxpayer without regard to its connection with his trade or business (or with his income-producing activity). In the case of a taxpayer which is not an individual, the preced- ing sentence shall be applied as if it were an in- dividual. (g) Treatment of entertainment, etc., type facility For purposes of this chapter, if deductions are disallowed under subsection (a) with respect to any portion of a facility, such portion shall be treated as an asset which is used for person- al, living, and family purposes (and not as an asset used In the trade or business). (h) Foreign conventions (1) Deductions with respect to not more than 2 for- eign conventions per year allowed If any individual attends more than 2 for- eign 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 atten- dance at any foreign convention during such taxable year (other than a foreign con- vention 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 ex- ceeds the lowest coac, or economy rate at 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. If 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 in full only if at least one-half of the days are devoted to busi- ness related activities In the case of any foreign convention, a de- duction for the full expenses of transporta- tion (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 trip, exclud- ing the days of transportation to and from the site of such convention, are devoted to business related activities. If less than one- half of the total days of the trip, excluding the days of transportation to and from the site of the convention, are devoted to business related activities, no deduction for tile ex- penses of transportation shall be allowed which exceeds the percentage of the days of the trip devoted to business related activities. (.1) )eductions for subsistence expenses not allowed unless the individual attends two-thirds of business activities In the case of any foreign convention, no deduction for subsistence expenses shall be allowed except as follows: (A) a deduction for a full day of subsis- tence expenses while at the convention shall be allowed if there are at least 6 hours of scheduled business activities during such day and the individual attending tile con- vention has attended at least two-thirds of these activities, and (B) a deduction for one-half day of subsis- tence expenses while at tie convention shall be allowed if there are at least 3 hours of scheduled business activities during such day and the individual attending the con- vention has attended at least two-thirds of these activities. Notwithstanding subparagraphs (A) and IB), a deduction for subsistence expenses for all of the days or half days, as the case may be, of the convention shall be allowed if the individ- ual attending the convention has attended at least two-thirds of the scheduled business ac- tivities, and each such full day consists of at least 6 hours of scheduled business activities and each such half day consists of at least 3 hours of scheduled business activities. (5) Deductible subsistence costs cannot exceed per diem rate for United States civil servants In the case of any foreign convention, no deduction for subsistence expenses while at the convention or traveling to or from such Page 219 § 27.1