§ 277. Deductions incurred by certain membership organizations in transactions with members

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 title I § 121(b)(3)(A) · 83 Stat. 487

   Enacted · 26 U.S.C. § 277

   Added Pub. L. 91–172, title I, § 121(b)(3)(A), Dec. 30, 1969, 83 Stat. 540

   Source evidence

   Code source credit
   Added Pub. L. 91–172, title I, § 121(b)(3)(A), Dec. 30, 1969, 83 Stat. 540

   Enacted provision · exact public law section
   (A) Part IX of Subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: “SEC. 277. DEDUCTIONS INCURRED BY CERTAIN MEMBERSHIP ORGANIZATIONS IN TRANSACTIONS WITH MEMBERS. “(a) General Rule.— In the case of a social club or other membership organization which is operated primarily to furnish services or goods to members and which is not exempt from taxation, deductions for the taxable year attributable to furnishing services, insurance, goods, or other items of value to members shall be allowed only to the extent of income derived during such year from members or transactions with members (including income derived during such year from institutes and trade shows which are primarily for the education of members). If for any taxable year such deductions exceed such income, the excess shall be treated as a deduction attributable to furnishing services, insurance, goods, or other items of value to members paid or incurred in the succeeding taxable year. “(b) Exceptions.— Subsection (a) shall not apply to any organization— “(1) which for the taxable year is subject to taxation under subchapter H or L, “(2) which has made an election before October 9, 1969, under section 456(c) or which is affiliated with such an organization, or 75 Stat. 222. 26 USC 456. “(3) which for each day of any taxable year is a national securities exchange subject to regulation under the Securities Exchange Act of 1934 or a contract market subject to regulation under the 48 Stat. 881. 15 USC 78a. 42 Stat. 998. 7 USC 1. Commodity Exchange Act.”

2. 1976

   Pub. L. 94–568 § 1(c) · 90 Stat. 2697

   Changed · 26 U.S.C. § 277(a)

   Pub. L. 94–568 provided that the deductions provided by sections 243, 244, and 245 (relating to dividends received by corporations) shall not be allowed to any organization to which this section applies for the taxable year

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–568 provided that the deductions provided by sections 243, 244, and 245 (relating to dividends received by corporations) shall not be allowed to any organization to which this section applies for the taxable year.

3. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title XVI § 1604(a) · 100 Stat. 2085

   Added · 26 U.S.C. § 277(b)(4)

   Pub. L. 99–514 added par. (4)

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 99–514 added par. (4).

   Enacted provision · exact public law section
   (a) In General.— Subsection (b) of section 277 (relating to deductions incurred by certain membership organizations in transactions with members) is amended— (1) by striking out “or” at the end of paragraph (2), (2) by striking out the period at the end of paragraph (3) and inserting in lieu thereof “, or”, and (3) by adding at the end thereof the following new paragraph: “(4) which is engaged primarily in the gathering and distribution of news to its members for publication.”

4. 2014

   Tax Technical Corrections Act of 2014

   Pub. L. 113–295 div. A title II § 221(a)(41)(G) · 128 Stat. 4010

   Struck · 26 U.S.C. § 277(a)

   Pub. L. 113–295 struck out “, 244,” after “sections 243”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 113–295 struck out “, 244,” after “sections 243”.

   Enacted provision · exact public law section
   (G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2), 469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), and (D) of section 805(a)(4), 805(b)(5), 812(e)(2)(A), 815(c)(2)(A)(iii), 832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are each amended by striking “, 244,” each place it appears.

   Effective date note
   Amendment by Pub. L. 113–295 not applicable to preferred stock issued before Oct. 1, 1942 (determined in the same manner as under section 247 of this title as in effect before its repeal by Pub. L. 113–295), see section 221(a)(41)(K) of Pub. L. 113–295, set out as a note under section 172 of this title. Except as otherwise provided in section 221(a) of Pub. L. 113–295, amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

3 of 4 references resolved to an enrolled provision · 1 partial