46
INTERNAL REVENUE CODE OF 1954
(2) traveling expenses (including the entire amount expended for meals and lodging) while away from home in the pursuit of a trade or business; and (3) rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity. For purposes of the preceding sentence, the place of residence of a Member of Congress (including any Delegate and Kesident Commissioner) within the State, congressional district. Territory, or possession which he represents in Congress shall be considered his home, but amounts expended by such Members within each taxable year for living expenses shall not be deductible for income tax purposes in excess of $3,000. (b) CHARITABLE CONTRIBUTIONS AND G I F T S E X C E P T E D. — N o de-
duction shall be allowed under subsection (a) for any contribution or gift which would be allowable as a deduction under section 170 were it not for the percentage limitations, or the requirements as to the time of payment, set forth in such section. (c) CROSS R E F E R E N C E. — ' For special rule relating to expenses in connection with subdividing real property for sale, see section 1237. SEC. 163. INTEREST. (a) GENERAL RULE. — The r e shall be allowed as a deduction all
interest paid or accrued within the taxable year on indebtedness. (b) INSTALLMENT PURCHASES W H E R E INTEREST CHARGE I S N O T SEPARATELY STATED.— (1) GENERAL RULE.—If personal property is purchased under a
contract— (A) which provides that payment of part or all of the purchase price is to be made in installments, and (B) in which carrying charges are separately stated but the interest charge cannot be ascertained, then the payments made during the taxable year under the contract shall be treated for purposes of this section as if they included interest equal to 6 percent of the average unpaid balance under the contract during the taxable year. For purposes of the preceding sentence, the average unpaid balance is the sum of the unpaid balance outstanding on the first day of each month beginning during the taxable year, divided by 12. (2) LIMITATION.—In the case of any contract to which paragraph (1) applies, the amount treated as interest for any taxable year shall not exceed the aggregate carrying charges which are properly attributable to such taxable year. (c) CROSS R E F E R E N C E S. — (1) For disallowance of certain amounts paid in connection with insurance, endowment, or annuity contracts, see section 264. (2) For disallowance of deduction for interest relating to tax-exempt income, see section 265(2). (3) For disallowance of deduction for carrying charges chargeable to capital account, see section 266. (4) For disallowance of interest with respect to transactions between related taxpayers, see section 267. 1162(a)(2)
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