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§ 10.8 DENIAL OF DEDUCTION FOR LOBBYING ACTIVITIESSuccess in this regard arrived in 1993, which brought permanent repeal ofthis alternative minimum tax rule in relation to gifts of all categories of property.166 Thus, an inducement for charitable giving, in the form of the appreciatedproperty contribution rules, is firmly embedded in the Internal Revenue Code.§ 10.7 INTERRELATIONSHIP WITH BUSINESSEXPENSE DEDUCTIONA charitable contribution deduction is not allowed for a gift of property forwhich the donor has claimed a business expense deduction. 167 For example, aretired athlete cannot claim a charitable contribution deduction for donating to amuseum gifts of clothing and supplies used during his or her career, if he or shepreviously claimed a business expense deduction with respect to the items. 168This limitation also applies to the deduction for depreciation. 169An individual or a corporation is not permitted a deduction for a contributionas a business expense if any part of it is deductible as a charitable contribution.170 For example, if an individual made a contribution of $5,000 and only$4,000 was deductible as a charitable contribution (whether because of the percentagelimitations, 171 the requirements as to time of payment, 172 or both), therecannot be a business expense deduction for the remaining $1,000. 173 For this ruleto apply, the payment must in fact be a charitable contribution. 174 Thus, contributionsto organizations other than charitable ones “which bear a direct relationshipto the taxpayer’s business and are made with a reasonable expectation of afinancial return commensurate with the amount of the donation may constituteallowable deductions as business expenses.” 175§ 10.8 DENIAL OF DEDUCTION FOR LOBBYING ACTIVITIESThe business expense deduction is denied for amounts incurred in an attempt toinfluence federal or state (but not local) legislation through communication withmembers or employees of legislative bodies or other government officials whomay participate in the formulation of legislation. 176 There is a flow-through rule,which disallows a business expense deduction for a portion of the membership165 Technical Explanation of the Finance Committee Amendment, at 579–580. The Technical Explanation wasnot formally printed; it was, however, reproduced in the Congressional Record. 138 Cong. Rec. (No. 112)S11246 (Aug 3, 1992).166 Omnibus Budget Reconciliation Act of 1993, § 13171(a).167 This point of law is derived from the basic rule that “[d]ouble [income tax] deductions are not permitted” and“[a]mounts deducted under one provision of the Internal Revenue Code . . . cannot again be deducted underany other provision thereof.” Reg. § 1.161-1; Ilfeld v. Hernandez, 292 U.S. 62 (1943). The business expensededuction is the subject of IRC § 162. See § 2.5(a).168 Priv. Ltr. Rul. 9335017.169 IRC §§ 167, 168.170 Reg. § 1.162-15(a)(1).171 See Chapter 7.172 See Chapter 6.173 Reg. § 1.162-15(a)(1).174 Reg. § 1.162-15(a)(2).175 Reg. § 1.162-15(b). See § 3.1(a), text accompanied by note 6; § 3.1(b), note 111.176 IRC §§ 162(e)(1), (2). 379