exempt

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exempt

(ĕg-zĕmpt′, ĭg-) [L. eximere, to take out, release, free]

Free from oversight or supervision by any regulation or authority.

References in periodicals archive ?

However, certain taxpayers are required to apply a general, ratable interest allocation rule to determine the interest expense disallowed when purchasing or carrying exempt obligations.

Interest allocation: The disallowance rules for dealers in exempt obligations are found in Rev.

265(a)(2) when an affiliated group member borrows funds and transfers them to another member, who then invests them in exempt obligations, However, the Tax Court addressed this issue in H Enterprises Int'l, Inc.

although the borrowing member cannot take an interest deduction, the lending member receives exempt interest income on the intercompany loan and can deduct interest paid to the third party; thus, there is no net interest expense disallowance on a consolidated basis, even though a consolidated borrowing supports the exempt investment).

Guidance on intercompany interest expense disallowance related to tax-exempt investments

274(e)(7) exempts the costs of goods, services and facilities the taxpayer makes available to the general public.

274(e)(8) exempts the costs of entertainment sold to customers.

274(e)(9) exempts expenses includible in income of non-employees as compensation for services or as a prize or award.

Food and beverage deduction

414(e), much like the ERISA definition, defines a church plan as a plan maintained by a church or convention or association of churches exempt from tax under Sec.