### Question
How does Income Taxes define personal transaction?


### Answer
Under *26 U.S.C. § 988*, **personal transaction** is defined as:

> any transaction entered into by an individual, except that such term shall not include any transaction to the extent that expenses properly allocable to such transaction meet the requirements of—


(A) section 162 (other than traveling expenses described in subsection (a)(2) thereof), or


(B) section 212 (other than that part of section 212 dealing with expenses incurred in connection with taxes)

#### Citation:
  - *26 U.S.C. § 988*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart J-Foreign Currency Transactions**

