### Question
How does ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS define in-house expenditures?


### Answer
Under *26 U.S.C. § 162*, **in-house expenditures** is defined as:

> expenditures described in paragraphs (1)(A) and (D) other than—


(I) payments by the taxpayer to a person engaged in the trade or business of conducting activities described in paragraph (1) for the conduct of such activities on behalf of the taxpayer, or


(II) dues or other similar amounts paid or incurred by the taxpayer which are allocable to activities described in paragraph (1)

#### Citation:
  - *26 U.S.C. § 162*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

