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Layout of the Code

29 July, 2015 - 17:19

We will be studying only certain portions of the Internal Revenue Code. You should learn the basic outline of Code provisions that establish the basic income tax. This will give you a good hunch of where to find the answer to particular questions. Some prominent research tools are organized according to the sections of the Code. Specifically –

§§ 1 and 11 establish rates;
§§ 21-54AA provide credits against tax liability;
§§ 55-59 establish the alternative minimum tax;
§§ 61-65 provide some key definitions concerning “gross income,” “adjusted gross income,” and “taxable income;”
§§ 67-68 provide rules limiting deductions;
§§ 71-90 require inclusion of specific items (or portions of them) in gross income;
§§ 101-139E state rules concerning exclusions from gross income;
§§ 141-149 establish rules governing state and local bonds whose interest is exempt from gross income;
§§ 151-153 establish rules governing personal exemptions;
§§ 161-199 establish rules governing deductions available both to individuals and corporations;
§§ 211-223 establish rules governing deductions available only to individuals;
§§ 241-249 establish rules governing deductions available only to corporations;
§§ 261-280H deny or limit deductions that might otherwise be available;
§§ 441-483 provide various rules of accounting, including timing of recognition of income and deductions;
§§ 1001-1021 provide rules governing the recognition of gain or loss on the disposition of property;
§§ 1031-1045 provide rules governing non-recognition of gain or loss upon the disposition of property, accompanied by a transfer and adjustment to basis;
§§ 1201-1260 provide rules for defining and calculating capital gains/losses;
§§ 1271-1288 provide rules for original issue discount.

These are (more than) the code sections that will be pertinent to this course. Obviously, there are many more code provisions that govern other transactions.