Michael H. Visin and Natalie Marselly - Page 7

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               rentals or other payments required to be made as a                     
               condition to the continued use or possession, for                      
               purposes of the trade or business, of property to which                
               the taxpayer has not taken or is not taking title or in                
               which he has no equity.                                                
               Structurally, section 162 is included in part VI (Itemized             
          Deductions For Individuals And Corporations) of subchapter B                
          (Computation of Taxable Income) of chapter 1 (Normal Taxes And              
          Surtaxes) of subtitle A (Income Taxes) of title 26 (Internal                
          Revenue Code) of the United States Code.  The relevance of the              
          placement of section 162 within the Internal Revenue Code will              
          become apparent momentarily.                                                
               Also included within part VI is section 161.  That section             
          provides as follows:                                                        
                    In computing taxable income under section 63,                     
               there shall be allowed as deductions the items                         
               specified in this part [i.e., part VI], subject to the                 
               exceptions provided in part IX (sec. 261 and following,                
               relating to items not deductible).  [Emphasis added.]                  
               Section 261, which is entitled “General Rule For                       
          Disallowance Of Deductions”, provides that “In computing taxable            
          income no deduction shall in any case be allowed in respect of              
          the items specified in this part [i.e., part IX].”  One of the              
          sections included in part IX is section 280A.                               
               At this point it should be apparent that section 162 is                
          subject to the exceptions and constraints of section 280A.  See             
          New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934) (oft            
          cited for the proposition that deductions are a matter of                   

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