
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC272]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
                      PART IX--ITEMS NOT DEDUCTIBLE
 
Sec. 272. Disposal of coal or domestic iron ore

    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.

(Aug. 16, 1954, ch. 736, 68A Stat. 82; Pub. L. 88-272, title II, 
Sec. 227(a)(3), (b)(3), Feb. 26, 1964, 78 Stat. 98.)


                               Amendments

    1964--Pub. L. 88-272 inserted ``or domestic iron ore'' in section 
catchline, and ``or iron ore'' wherever appearing in text.


                    Effective Date of 1964 Amendment

    Section 227(c) of Pub. L. 88-272 provided that: ``The amendments 
made by this section [amending this section and sections 631, 1016, 
1231, and 1402 and section 411 of Title 42, The Public Health and 
Welfare] shall apply with respect to amounts received or accrued in 
taxable years beginning after December 31, 1963, attributable to iron 
ore mined in such taxable years.''

                  Section Referred to in Other Sections

    This section is referred to in sections 631, 1016 of this title.
