# 26 U.S.C. § 272: Disposal of coal or domestic iron ore

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s272>. Cite pinpoints as 26 U.S.C. § 272(a)(1).

Where the disposal of coal or iron ore is covered by section 631, no deduction shall be allowed for expenditures attributable to the making and administering of the contract under which such disposition occurs and to the preservation of the economic interest retained under such contract, except that if in any taxable year such expenditures plus the adjusted depletion basis of the coal or iron ore disposed of in such taxable year exceed the amount realized under such contract, such excess, to the extent not availed of as a reduction of gain under section 1231, shall be a loss deductible under section 165(a). This section shall not apply to any taxable year during which there is no income under the contract.

## Regulations

- [Treas. Reg. § 1.272-1](/26/reg/1.272-1.md): Expenditures relating to disposal of coal or domestic iron ore. (interprets § 272)

## Connections

Cites: § 165 Losses; § 631 Gain or loss in the case of timber, coal, or domestic iron ore; § 1231 Property used in the trade or business and involuntary conversions

Cited by: § 631 Gain or loss in the case of timber, coal, or domestic iron ore; § 1016 Adjustments to basis

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 82
- 1964-02-26: [Pub. L. 88-272](/26/act/88-272.md), 78 Stat. 98