Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 76-64

1976-1 C.B. 45

Section 162

IRS Headnote

Legislator's expenses of attending political convention. An elected legislator's expenses of attending a political party's biennial convention, held to plan strategy and advance the party's political programs, as a participant of a law enforcement panel to discuss various aspects of law enforcement in relation to the party's political programs are not deductible as business expenses under section 162 of the Code.

Full Text

Rev. Rul. 76-64

Advice has been requested whether the expenses of attending the biennial convention of one of the major political parties are deductible as ordinary and necessary business expenses under section 162 of the Internal Revenue Code of 1954.

The taxpayer, an elected legislator, attended a political party's biennial convention as a participant on a panel concerning law enforcement. The purpose of the convention was to plan party strategy and to advance its political programs. The purpose of the panel was to discuss the various aspects of law enforcement, and its importance and relationship to the party's political programs.

Section 162 of the Code allows, among other things, a deduction for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including traveling expenses (including amounts expended for meals and lodging other than amounts that are lavish or extravagant under the circumstances) while away from home in the pursuit of a trade or business.

Section 1.162-2(d) of the Income Tax Regulations provides that expenses paid or incurred by a taxpayer in attending a convention or other meeting may constitute an ordinary or necessary business expense under section 162 of the Code depending on the facts and circumstances of each case. The allowance of deductions for expenses will depend upon whether there is a sufficient relationship between the taxpayer's trade or business and the attendance at the convention or other meeting so that the taxpayer is benefiting or advancing the interests of the trade or business by such attendance. If the convention is for political, social or other purposes unrelated to the taxpayer's trade or business, the expenses are not deductible.

In the instant case, the primary purpose of the convention was to plan strategy and advance the political programs of the party. Thus, the legislator's attendance at the convention as a participant on the law enforcement panel was related to the formulation of the political party's policy on specific issues and not directly connected with the taxpayer's business as a legislator.

Accordingly, the legislator's expenses for attending the party's biennial political convention are not deductible as business expenses within the meaning of sections 162 of the Code and 1.162-2(d) of the regulations.