# 26 U.S.C. § 212: Expenses for production of income

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s212>. Cite pinpoints as 26 U.S.C. § 212(a)(1).

In the case of an individual, there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year—

## § 212(1)

for the production or collection of income;

## § 212(2)

for the management, conservation, or maintenance of property held for the production of income; or

## § 212(3)

in connection with the determination, collection, or refund of any tax.

## Regulations

- [Treas. Reg. § 1.212-1](/26/reg/1.212-1.md): Nontrade or nonbusiness expenses. (interprets § 212)

## Leading cases

- [Neely v. Commissioner, 85 T.C. 934 (1985)](https://www.courtlistener.com/opinion/4706203/neely-v-commissioner/)
- [Green v. Commissioner, 507 F.3d 857 (5th Cir. 2007)](https://www.courtlistener.com/opinion/1435136/green-v-commissioner/)
- [Accardo v. Commissioner, 942 F.2d 444 (7th Cir. 1991)](https://www.courtlistener.com/opinion/566858/anthony-j-accardo-and-clarice-accardo-v-commissioner-of-internal-revenue/)

## Proposed regulations (not in force)

- [Prop. Treas. Reg. § 1.212-1](/26/prop/1.212-1_04-4151.md): Nontrade or nonbusiness expenses. (REG-100420-03, proposed 2004-02-26)

## Connections

Cites: none

Cited by: § 62 Adjusted gross income defined; § 164 Taxes; § 183 Activities not engaged in for profit; § 193 Tertiary injectants; § 197 Amortization of goodwill and certain other intangibles; § 265 Expenses and interest relating to tax-exempt income; § 274 Disallowance of certain entertainment, etc., expenses; § 404 Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan; § 469 Passive activity losses and credits limited; § 860C Taxation of residual interests; § 988 Treatment of certain foreign currency transactions; § 1275 Other definitions and special rules; § 6421 Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes

Derived from: 1939 § 23(a)(2)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 69