reglab/statecodes huggingface dataset:
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 03 - Employee Benefits › Section 35-3-03-03-104

Current through June 25, 2024
The gross income of an employee does not include
					 contributions which his employer makes to an accident or health plan for
					 compensation (through insurance or otherwise) to the employee for personal
					 injuries or sickness incurred by him, his spouse or his
					 dependents.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 03 - Employee Benefits › Section 35-3-03-03-105

Current through June 25, 2024
Nontaxable benefits under Section 125 of the Internal
					 Revenue Code referred to as "cafeteria plans" are also excludable for
					 Mississippi Income Tax purposes to the extent allowed by the IRC. Mississippi
					 also recognizes Section 129 of the Internal Revenue Code pertaining to
					 dependent care assistance programs and Section 127 of the Internal Revenue Code
					 pertaining to employer provided educational assistance plans. The benefits
					 mentioned above under IRC Sections 125, 127 and 129 are not subject to
					 Mississippi withholding.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 03 - Employee Benefits › Section 35-3-03-03-106

Current through June 25, 2024
The value of any meals or lodging furnished to an employee,
					 his spouse or any of his dependents by or on behalf of his employer for the
					 convenience of the employer may be excluded from gross income of an employee
					 but only if in the case of meals, the meals are furnished on the business
					 premises of the employer, or in the case of lodging, the employee is required
					 to accept such lodging on the business premises of his employer as a condition
					 of his employment.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 03 - Employee Benefits › Section 35-3-03-03-107

Current through June 25, 2024
The rental value of a dwelling furnished to a minister of
					 the gospel is exempt from tax as is a rental allowance to the extent that the
					 allowance is used to rent or provide a home. This includes the portion of a
					 retired minister's pension designated as a rental allowance by the national
					 governing body of a religious denomination having complete control over the
					 retirement fund. The exemption also applies to the rental value of a residence
					 furnished to a retired minister (but not the minister's
					 spouse).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 05 - Proceeds of Life Insurance › Section 35-3-03-05-100

Current through June 25, 2024
Mississippi law excludes from the definition of "Gross
					 Income" the proceeds of life insurance policies and contracts paid upon the
					 death of the insured. Mississippi does not limit the exclusion on any death
					 benefit paid by or for the employer of the deceased employee.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 05 - Proceeds of Life Insurance › Section 35-3-03-05-102

Current through June 25, 2024
The Commissioner will follow Federal Rules, Regulations
					 and Revenue Procedures as are deemed not contrary to the context and intent of
					 Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 06 - Gifts, Bequests, Devises, Prizes, Awards, Scholarships and Fellowship Grants › Section 35-3-03-06-100

Current through June 25, 2024
Mississippi will follow Federal rules and regulations not
					 in conflict with Mississippi law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 07 - Contributions by Employer to Accident and Health Plans › Section 35-3-03-07-100

Current through June 25, 2024
The gross income of an employee does not include
					 contributions which his employer makes to an accident or health plan for
					 compensation (through insurance or otherwise) to the employee for personal
					 injuries or sicknesses incurred by him, his spouse or his dependents. The
					 employer may contribute to an accident or health plan either by paying the
					 premium (or a portion of the premium) on a policy of accident or health
					 insurance covering one or more of his employees, or by contributing to a
					 separate trust or fund. However, if such insurance policy, trust or fund
					 provides other benefits in addition to accident and health benefits, the
					 exclusion applies only to that portion of the employer's contribution which is
					 allocable to accident and health benefits.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 08 - Exclusion Military Pensions and Disability Payments for Certain Injuries and Sicknesses › Section 35-3-03-08-100

Current through June 25, 2024
The Commissioner will follow Federal Rules, Regulations
					 and Revenue Procedures relating to the classification and tax treatment of
					 amounts permitted as an exclusion under this regulation to the extent that such
					 procedures are deemed not contrary to the context and intent of Mississippi
					 Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 09 - Gaming Winnings and Gaming Income › Section 35-3-03-09-100

Current through June 25, 2024
Amounts received in cash or other remuneration from play at
					 a gambling game or as a prize, lottery, award, or tournament winning are
					 subject to an income tax levy. However, the reporting requirements and tax levy
					 will vary depending on the source of the income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 09 - Gaming Winnings and Gaming Income › Section 35-3-03-09-101 - Terms

Current through June 25, 2024
1. The term "Mississippi gaming
				  establishment" or "gaming establishment" means any establishment where gambling
				  games are conducted or operated within this state and any party that provides
				  or is responsible for the payment of cash or other remuneration resulting
				  directly or indirectly from play at gambling games within this state. Gaming
				  establishments include those establishments required to be licensed under the
				  Mississippi Gaming Control Act, establishments which would be licensed under
				  the Mississippi Gaming Control Act but for a federal preemption, and the
				  Mississippi Lottery Corporation.
2.
				  The term "Mississippi gaming winnings" or "gaming winnings" includes all
				  amounts that are paid, whether in cash or other form, by Mississippi gaming
				  establishments to patrons which are subject to the withholding and/or reporting
				  requirements of the Internal Revenue Code (IRC) as specified in Miss. Code Ann.
				  Sections 27-7-901 and 27-7-903. Such amounts are not limited to cash or
				  remuneration from play at a gambling game, but include, without limitation,
				  amounts considered prizes, awards, tournament winnings, or similar types of
				  compensation.
3. The term "paid"
				  means the gross amount of gaming winnings without respect to any reduction for
				  tax withholdings or other reserves and may not be less than the amount reported
				  for federal tax purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 09 - Gaming Winnings and Gaming Income › Section 35-3-03-09-102 - Mississippi Gaming Winnings

Current through June 25, 2024
1. A tax levy of
				  three percent (3%) is made on all Mississippi gaming winnings. Such amount is
				  required to be withheld by the Mississippi gaming establishment. The amount of
				  tax withheld from gaming winnings will be reflected on Federal Form W-2G or
				  other information return filed by the gaming establishment to report the
				  transaction. The amount to be withheld is three percent (3%) of the amount
				  paid, whether in cash or other form, to the recipient.
2.
Multi-period
				  payoffs
: If a patron is entitled to receive either a lump-sum
				  payment or a series of periodic payments received at least annually, then a tax
				  of three percent (3%) is levied on the lump-sum amount in the year it is
				  constructively received. The three percent (3%) levy is a liability of the
				  Mississippi gaming establishment which was a party to the wager, regardless of
				  whether it is the paying agent.
3.
				  The three percent (3%) withheld on Mississippi gaming winnings reflects the tax
				  due and once such proper amounts are remitted to the Department of Revenue by
				  the Mississippi gaming establishment, as well as a properly completed W-2G,
				  1099, or other federally prescribed informational statement (filed annually or
				  as prescribed by the Commissioner), the patron has no further filing
				  requirements. If the federally prescribed information return does not allow for
				  the recording of both state income and state tax withholdings, then a W-2G
				  should be completed and attached as part of the filing of such
				  statement.
4. The W-2G or 1099
				  reflecting the income and Mississippi withholding once remitted by the
				  Mississippi gaming establishment to the Department of Revenue serves as the
				  patrons return filing for such income. Accordingly, Mississippi gaming winnings
				  are not reported on the patron's regular income tax return filing. Likewise,
				  the amounts withheld cannot be claimed on an income tax return filing to offset
				  a tax liability, create a refund, or to generate any other type of credit or
				  offset.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 09 - Gaming Winnings and Gaming Income › Section 35-3-03-09-103 - Other Mississippi Gaming Income

Current through June 25, 2024
Except for the amounts described in paragraph 102, all
					 other gaming income is subject to the income tax levy provided for in Miss.
					 Code Ann. Section 27-7-3. Any gaming losses incurred at Mississippi gaming
					 establishments are a reduction, as compared to an itemized deduction, to
					 Mississippi gaming income. The net of such amounts, if positive, is reportable
					 by the patron as taxable Mississippi income. Mississippi gaming income includes
					 any gaming income not covered by the three percent (3%) levy described in
					 paragraph 102 received from a Mississippi gaming establishment. Mississippi
					 gaming losses may not be taken as a separate deduction or otherwise offset any
					 income other than Mississippi gaming income not subject to the three percent
					 (3%) withholding requirement and resulting from a wager.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 03 - Exclusions from Gross Income › Chapter 09 - Gaming Winnings and Gaming Income › Section 35-3-03-09-104 - Non-Mississippi Gaming Income

Current through June 25, 2024
Mississippi follows federal rules, regulations, and revenue
					 procedures to the extent not contrary to the laws of this state in determining
					 the amount of gaming income received and gaming losses incurred by Mississippi
					 residents at non-Mississippi gaming establishments. Non-Mississippi gaming
					 income is reported apart from any non-Mississippi gaming losses incurred.
					 Non-Mississippi gaming losses are allowed as an itemized deduction to the
					 extent of any non-Mississippi gaming income. In no event may the deduction for
					 such losses exceed the non-Mississippi gaming income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-100

Current through June 25, 2024
Payments to an IRA, SEP, Keogh Retirement Plan (Retirement
					 Plans)
A deduction is allowed for contributions to various
					 retirement plans to the extent that such payments are deductible for federal
					 income tax purposes. For details, see Regulation 402.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-101

Current through June 25, 2024
Interest Penalty on Early Withdrawal of Savings
Amounts forfeited to a financial institution, such as a
					 penalty for premature withdrawal of funds form a time savings account,
					 certificate of deposit, or similar class of deposit, are allowed as a deduction
					 from gross income. The 1099 form furnished by the financial institution will
					 show the amount of any interest penalty charge for early withdrawal. This
					 amount is deductible form gross income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-102 - Alimony and Separate Maintenance Payments

Current through June 25, 2024
1. A
				  deduction from gross income in determining adjusted gross income is allowable
				  with respect to payments in the nature of, or in lieu of alimony or an
				  allowance for spousal, not child, actually paid by the taxpayer during the
				  taxable year. This same amount must be included in the income of the spouse
				  receiving the payment.
2. Unless
				  otherwise instructed in writing, the Commissioner will follow the Federal
				  Rules, Regulations and Revenue Procedures relating to alimony and separate
				  maintenance payments as are deemed not to be contrary to the context and/or
				  intent of Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-103 - Moving Expenses

Current through June 25, 2024
Moving expenses are deductible as an adjustment to gross
					 income as allowed for federal income tax purposes. Attach a copy of the federal
					 form to the Mississippi return. Unless otherwise instructed in writing, the
					 Commissioner will follow Federal Rules, Regulations and Revenue Procedures
					 relating to the deduction of un-reimbursed allowable moving expenses as are
					 deemed not to be contrary to the context and/or intent of Mississippi
					 Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-104 - National Guard or Reserve Pay

Current through June 25, 2024
A taxpayer is allowed a deduction to gross income for
					 compensation received as a member of the National Guard or Reserve Forces of
					 the United State not to exceed the sum of Five Thousand Dollars ($5,000.00) for
					 any taxable year. Only compensation received as payment for inactive duty
					 training (monthly or special drills or meetings), active duty training (summer
					 camps, special schools, cruises) and state active duty (emergency duty)
					 qualifies for this deduction to gross income. Full-time National Guard pay is
					 not allowed as a deduction. Report this income as regular wages or
					 salaries.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-105 - MPACT or MACS Program Payments

Current through June 25, 2024
1. Taxpayers who
				  make payments to a prepaid tuition contract or a college savings account under
				  the MPACT (Mississippi Prepaid Affordable College Tuition) or the MACS
				  (Mississippi Affordable College Savings) programs are allowed a deduction for
				  the actual amounts paid during the taxable year as an adjustment to gross
				  income. Each program shall provide to the taxpayer an annual statement of
				  account to identify the amount paid and therefore, eligible for the
				  adjustment.
2. Unqualified
				  distributions of previously deducted MPACT or MACS payments must be included in
				  gross income in the year they are received. Payments to other prepaid tuition
				  programs are not eligible for this deduction.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 01 - Adjustments to Gross Income › Section 35-3-04-01-106 - Self-Employed Health Insurance Deduction

Current through June 25, 2024
Amounts paid by a self-employed individual for insurance
					 which constitute medical care for the taxpayer, his spouse and dependents, are
					 deductible as an adjustment to gross income. Unless otherwise instructed in
					 writing, the Commissioner will follow Federal Rules, Regulations and Revenue
					 Procedures relating to the deduction of self-employed health insurance as are
					 deemed not to be contrary to the context and/or intent of Mississippi
					 Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-100

Current through June 25, 2024
An adjustment to gross income for contributions to a
					 tax-sheltered annuity may be claimed for Mississippi income tax purposes only
					 to the extent permitted for Federal Income Tax purposes. The Commissioner will,
					 therefore, follow the Federal Rules, Regulations and Revenue Procedure issued
					 under Section 403(b), IRC, and such other Federal Rules and Regulations
					 relating to contributions to tax-sheltered annuities as are deemed not contrary
					 to the context and intent of Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-101 - Qualified Deferred Compensation Plans › Section 35-3-04-02-101.01

Current through June 25, 2024
Beginning July 1, 1982, amounts withheld from the wages
						and salaries of members of the Mississippi Pu blic Employees Retirement System
						as required contributions to the retirement fund are excludable from gross
						income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-101 - Qualified Deferred Compensation Plans › Section 35-3-04-02-101.02

Current through June 25, 2024
The Commissioner will follow those rules and regulations
						issued by the Internal Revenue Service relating to an exclusion for
						contributions to an authorized and qualified deferred compensation plan as are
						deemed not contrary to the context and intent of Mississippi
						Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-102 - Self-Employed Retirement Plan

Current through June 25, 2024
A deduction from gross income in determining adjusted
					 gross income is allowable for amounts contributed by a self-employed individual
					 to a qualified retirement plan which meets the qualifications and restrictions
					 of a plan established under Sections 401-405, IRC, and only to the extent that
					 such contributions are deductible for Federal income tax
					 purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-103 - Retirement Savings-IRA's › Section 35-3-04-02-103.01

Current through June 25, 2024
Any part of a lump-sum distribution from a qualified
						retirement plan which is rolled over into an individual retirement account
						described in Section 408(a), IRC, and an individual retirement annuity
						described in Section 409, IRC, may be deducted from gross income for
						Mississippi income tax purposes only to the extent that such roll over amounts
						are permitted as a deduction or exclusion for Federal income tax
						purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 04 - Adjustments to Gross Income › Chapter 02 - Adjustments to Gross Income-Retirement Plans › Section 35-3-04-02-104

Current through June 25, 2024
Amounts withheld from wages as required contributions to
					 the Federal Insurance Contributions Act are not deductible or excludable from
					 gross income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-100

Current through June 25, 2024
The taxable income on which the income tax is based is the
					 gross income of the taxpayer, less certain specific deductions allowed by law
					 plus, in the case of individuals, trusts and estates, certain specific amounts
					 for personal and additional exemptions. The allowance for deductions fall into
					 three basic classes; namely,
1.
				  Ordinary and necessary expenditures connected with a trade or
				  business.
2. Adjustments to gross
				  income.
3. Non-business individual
				  itemized deductions or standard deduction.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-101

Current through June 25, 2024
Business deductions falling within class 1 above are
					 deductible from the gross profit of the trade or business to determine the net
					 profit or loss of the business activity. Deductions falling within class 2
					 above are deductible from the gross income of the taxpayer to determine net
					 income, commonly referred to as adjusted gross income, and may be claimed by
					 the individual regardless of whether non-business deductions are itemized.
					 Deductions falling within class 3 are generally personal in nature and may be
					 claimed only when itemized. In lieu of itemizing personal non-business
					 deductions, the individual may elect to claim the optional standard
					 deduction.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-102

Current through June 25, 2024
Under no circumstances, may an item of expense be deducted
					 as both a business deduction and a non-business deduction, either in fact or in
					 effect, in the taxable year.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-103

Current through June 25, 2024
Business expenses deductible from gross income include the
					 ordinary and necessary expenditures directly connected with or pertaining to
					 the taxpayer's trade or business. The cost of goods purchased for resale, with
					 proper adjustment for opening and closing inventories, is deducted from gross
					 sales in computing gross income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-104

Current through June 25, 2024
Among items included in business expenses are management
					 expenses, commissions, labor, supplies, incidental repairs, operating expenses
					 of automobiles used in the trade or business, traveling expenses while away
					 from home solely in the pursuit of a trade or business, advertising and other
					 selling expenses, together with insurance premiums against fire, storm, theft,
					 accident or other similar losses in the case of a business and rental for the
					 use of business property.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-105

Current through June 25, 2024
However, no such item shall be included in business
					 expenses to the extent that it is used by the taxpayer in computing the cost of
					 property included in its inventory or used in determining the gain or loss of
					 its plant, equipment or other property. The full amount of the allowable
					 deduction for ordinary and necessary expenses in carrying on a business is
					 deductible, even though such expenses exceed the gross income derived during
					 the taxable year from such business.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-106

Current through June 25, 2024
The following requirements determine whether a particular
					 item of expense is deductible as a business expense: It must be incurred in a
					 trade or business carried on by the taxpayer. This excludes all personal
					 expenses as well as expenses sustained in earning income, but not arising from
					 a trade or business. Expenses directly related to earning exempt income are not
					 deductible.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 01 - Business Deductions › Section 35-3-05-01-108

Current through June 25, 2024
The expenses must be ordinary, necessary and reasonable.
					 To the extent that an expense is unreasonable, it is not necessary and will not
					 be allowed as a deduction.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-100

Current through June 25, 2024
A taxpayer may take a business expense deduction for an
					 ordinary and necessary expenditure in regard to certain types of activities
					 relating to promoting or combating legislation. An expense is deductible if it
					 is paid or incurred (1) in direct connection with an appearance before,
					 submission of statements to, or sending communications to, Congressional
					 Committees or legislative bodies of states, U. S. possessions, etc., in regard
					 to legislation of direct interest to the taxpayer, or (2) in direct connection
					 with communication of information between the taxpayer and a trade or business
					 organization of which he is a member concerning legislation of direct interest
					 to both parties.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-101

Current through June 25, 2024
A portion of the dues for membership in an organization
					 engaged in such activities is deductible. The deduction is limited to that
					 portion which is attributable to the expenses incurred by the organization
					 engaged in such activities.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-102

Current through June 25, 2024
However, expenses incurred in an attempt to influence the
					 general public, or segments thereof, are nondeductible. This limitation applies
					 to a corporation's attempt to influence its shareholders.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-103

Current through June 25, 2024
Political contributions are not deductible either as
					 business expenses or as charitable contributions.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-104

Current through June 25, 2024
Deductions otherwise allowable as a business expense shall
					 not be allowed for any amount paid or incurred for admission to any program or
					 event identified with a political candidate or party or if any portion of the
					 proceeds from such program or event inures to or for the use of the party or
					 candidate.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 02 - Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising › Section 35-3-05-02-105

Current through June 25, 2024
Expenditures for institutional or "good will" advertising
					 which keeps the taxpayer's name before the public are deductible business
					 expenses if the expenditures are related to the patronage the taxpayer might
					 reasonably expect in the future.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 03 - Taxes Paid as Business Expense › Section 35-3-05-03-100

Current through June 25, 2024
Only the following taxes shall be allowed as a business
					 expense deduction in computing net income for the taxable year within which
					 paid or accrued, according to the method of accounting used in computing
					 taxable income:
1. State and local,
				  and foreign, real property taxes.
2. State and local personal property
				  taxes.
3. Cigar and cigarette
				  taxes, gasoline taxes, and sales and use taxes if included in business gross
				  income, or if incurred as an item of expense in a trade or business or in the
				  production of taxable income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 03 - Taxes Paid as Business Expense › Section 35-3-05-03-101

Current through June 25, 2024
In addition, there shall be allowed as a business expense
					 deduction state and local taxes, not described in the preceding section and not
					 otherwise specifically excluded under the following section of this chapter,
					 which are paid or accrued within the taxable year in carrying on a trade or
					 business.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 03 - Taxes Paid as Business Expense › Section 35-3-05-03-102

Current through June 25, 2024
The following taxes shall not be allowed as a business
					 expense deduction in computing net income:
1. Federal and state income taxes.
2. Any taxes based on or measured by net
				  income.
3. Estate and inheritance
				  taxes.
4. Gift taxes.
5. Cigar and cigarette taxes, gasoline taxes,
				  and sales and use taxes if not included in business gross income, or if not
				  incurred as an item of expense in a trade or business.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 03 - Taxes Paid as Business Expense › Section 35-3-05-03-103

Current through June 25, 2024
To the extent that a specific tax is deductible under both
					 Federal and State Law, the Commissioner will follow Federal Rules, Regulations
					 and Revenue Procedures relating to the tax treatment of the specific
					 tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 04 - Depreciation › Section 35-3-05-04-100

Current through June 25, 2024
Reasonable Allowance. Section
					 27-7-17(1)(f)
					 provides that a reasonable allowance for the exhaustion, wear and tear and
					 obsolescence of property used in the trade or business or property held by the
					 taxpayer for the production of income shall be allowed as a depreciation
					 deduction. The allowance is that amount which should be set aside for the
					 taxable year in accordance with a consistent plan, so that the aggregate of the
					 amounts set aside will equal the cost or other basis of the property. The
					 allowance shall not reflect amounts representing a mere reduction in market
					 value. Mississippi will follow Federal depreciation guidelines as are not
					 deemed contrary to the context and intent of Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 04 - Depreciation › Section 35-3-05-04-101

Current through June 25, 2024
The first year thirty-percent (30%) "bonus" depreciation
					 as set forth in the Federal "Job Creation and Worker Assistance Act of 2002",
					 H.R. 3090, does not constitute a reasonable allowance for the exhaustion, wear,
					 and tear and obsolescence of the property in regard to which it is taken. This
					 thirty-percent (30%) "bonus" depreciation is therefore not an allowable
					 deduction for depreciation under Section
					 27-7-17(1)(f).
					 Mississippi will not follow the Federal guidelines in regard to this "bonus"
					 depreciation since such "bonus" depreciation is contrary to the context and
					 intent of Mississippi Law. If such "bonus" depreciation is used for federal
					 income tax reporting purposes, the tax basis of property will be different for
					 Federal and State until such property is fully depreciated.
1. If such "bonus" depreciation is used for
				  federal income tax reporting, each year an adjustment must be made for
				  reporting depreciation to this State so as to reflect an amount of depreciation
				  that would have otherwise been allowed using Federal depreciation guidelines
				  other than that contained in H.R.3090 "Job Creation and Worker Assistance Act
				  of 2002."
2. If it is determined
				  "bonus" depreciation was taken in any year and the proper State adjustment was
				  not made in that same year, all allowances for depreciation will be denied on
				  all tax returns that are within the statute of limitations until there is a
				  full recovery to this State of excess depreciation deductions. When the
				  Commissioner makes such adjustment, there shall be assessed, in addition to
				  interest, all penalties on any underpayment of income tax to the extent
				  provided by law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 04 - Depreciation › Section 35-3-05-04-102

Current through June 25, 2024
Mississippi does not recognize the Federal tax credit
					 allowed for qualified depreciable property acquired and placed in service
					 during the tax year and does not require the taxpayer's basis in the property
					 be reduced by 50% of the investment tax credit. This affects the computation of
					 gain or loss upon disposition of the asset. In order for a taxpayer to maintain
					 the same basis in property for both Federal and state purposes, for property
					 placed in service after 1982, the taxpayer's basis in the property may be
					 reduced by 50% of the investment tax credit as additional depreciation for
					 Mississippi income tax purposes in the year the ITC is taken.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 04 - Depreciation › Section 35-3-05-04-103

Current through June 25, 2024
A taxpayer may elect to treat the cost of any Internal
					 Revenue Code Section 179 property, which is not chargeable to a capital account
					 as an expense. Cost so treated shall be allowed as a deduction for the taxable
					 year in which the Section 179 property is placed in service. In determining the
					 amount of allowable expense deduction in any taxable year, the Commissioner
					 will follow Federal Rules, Regulations and Revenue Procedures issued under
					 Section 179, Internal Revenue Code as are deemed not contrary to the context
					 and intent of Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 05 - Depletion › Section 35-3-05-05-100

Current through June 25, 2024
Section
					 27-7-17(1)(g)
					 provides that there shall be allowed as a deduction in computing taxable income
					 in the case of mines, oil and gas wells, other natural deposits and timber, a
					 reasonable allowance for depletion and for depreciation of improvements,
BASED UPON COST
, including cost of development, not
					 otherwise deducted, or fair market value as of March 16, 1912, if acquired
					 prior to that date.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 05 - Depletion › Section 35-3-05-05-101

Current through June 25, 2024
In the case of standing timber, the depletion allowance
					 shall be computed solely upon the adjusted cost basis of the property. In the
					 case of other exhaustible natural resources, the allowance for depletion shall
					 be computed upon either the adjusted cost basis of the property (cost
					 depletion) or upon a percentage of gross income from the property (percentage
					 depletion), whichever results in the greater allowance for depletion for any
					 taxable year, but in no case shall the aggregate deductions for depletion
					 allowance exceed the cost basis of the property. In no case will depletion
					 based upon discovery value be allowed. Unless cost of mineral deposits can be
					 definitely determined and substantiated, a depletion deduction will not be
					 allowed. Depletion is allowable only in connection with actual production. A
					 depletion deduction is not allowed on lease bonus or lease rental
					 income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 05 - Depletion › Section 35-3-05-05-102

Current through June 25, 2024
For the purpose of this regulation, the regulations of the
					 Internal Revenue Service shall be followed in computing the depletion
					 allowance, except as stated above and in those cases where the Mississippi Law
					 and the Federal Law are in conflict. The percentage depletion allowance
					 authorized by the Federal Law may be used as a method of computing the
					 depletion allowance for Mississippi tax purposes. However, in no instance shall
					 the aggregate deduction for depletion exceed the cost basis of the property.
					 Taxpayers having rights to natural resources located in this state and in other
					 states shall confine their computation and deduction for depletion allowances
					 to only those natural resources which produce income for Mississippi tax
					 purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-100

Current through June 25, 2024
Taxpayers are allowed to carryover their net operating
					 losses from a trade or business and deduct such loss in the next five
					 succeeding years. The carryover is first to the year immediately following the
					 loss year, then to the second year following the loss year, and so on until the
					 loss is exhausted, not to exceed five years. In instances where more than one
					 year's net operating loss is being carried over, the first year's loss must be
					 carried over first until exhausted before the second year's loss may be carried
					 over, and subsequent years' losses must be carried over in the same
					 manner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-101

Current through June 25, 2024
Taxpayers entitled to the net operating loss carryover
					 are:
1. Individuals
2. Corporations (Except for regulated
				  investment companies, and life and mutual insurance companies other than
				  marine).
3. Estates and
				  trusts
4. Partners (to the extent
				  of their allocable share of partnership net losses).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-102

Current through June 25, 2024
In order to qualify as an operating loss carryover under
					 the provisions of Section
					 27-7-17(1)(l)
					 of the Code, the loss to be carried over must have been incurred first; from
					 sources within the boundaries of the State of Mississippi, or from sources
					 within the jurisdictional boundaries of the Income Tax Laws of the State of
					 Mississippi; and secondly, the loss must have been reported as such on an
					 income tax return filed with the State of Mississippi for the year of the loss
					 by the taxpayer claiming the loss carryover.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-103

Current through June 25, 2024
A net operating loss incurred by any taxpayer prior to
					 becoming subject to the jurisdiction of the Mississippi Income Tax Laws will
					 not be allowed as a loss carryover deduction.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-104

Current through June 25, 2024
Taxpayers who under applicable provisions of the statute
					 are allowed or required to exclude income earned from sources outside of
					 Mississippi, and taxpayers who are required to use formulas in determining
					 Mississippi taxable net income shall determine Mississippi net operating losses
					 in the same manner as Mississippi taxable net income is
					 determined.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-105

Current through June 25, 2024
In making a claim for a net operating loss deduction, the
					 taxpayer must file with its income tax return for the year of such deduction, a
					 concise statement setting forth all material and pertinent facts related
					 thereto; including a detailed schedule showing how the deduction was computed.
					 If more than one net operating loss is being carried over, this schedule must
					 be submitted for each loss year individually.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 06 - Net Operating Loss › Section 35-3-05-06-106

Current through June 25, 2024
The Commissioner will follow Federal Rules, Regulations
					 and Revenue Procedures to the extent they are deemed not contrary to the
					 context and intent of Mississippi Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 07 - Wage Tax Credits › Section 35-3-05-07-100

Current through June 25, 2024
Mississippi does not recognize federal regulations issued
					 under Section 280 or 44B, IRC regarding tax credits allowed for work incentive
					 programs or the employment of certain new employees. Deduction for wages paid
					 should be computed without regard to the reduction for wage tax credits for
					 Mississippi income tax purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 08 - Other Business Deductions › Section 35-3-05-08-100

Current through June 25, 2024
The Commissioner will follow Federal Rules, Regulations
					 and Revenue Procedures relating to the following business deductions to the
					 extent that such procedures are deemed not contrary to the context and intent
					 of Mississippi Law.
1. Activities Not
				  Engaged in for Profit - Hobby Losses
2. Amortizable Bond Premium
3. Amortization of Pollution Control
				  Facilities
4. Bad Debts
5. Bonuses to Employees
6. Bribes and Kickbacks
7. Capital Contributions to Federal National
				  Mortgage Association (F.N.M.A.)
8.
				  Circulation Expenditures
9.
				  Compensation for Personal Services
10. Cost of Materials
11. Decline in Value of Stock
12. Deduction for Discount on Bonds
13. Demolition of Buildings
14. Depreciation or Amortization of
				  Improvements made by Lessee on Lessor's Property
15. Employee Benefits
16. Entertainment Expenses
17. Expenses and Interest Relating to Tax -
				  Exempt Income
18. Excessive
				  Compensation
19. Farmers'
				  Expenditures for Clearing Land
20.
				  Farmers' Expenditures for Fertilizer
21. Farming Expenses & Losses
22. Fines and Penalties
23. Interest Paid
24. Losses from Wash Sales of Stock or
				  Securities
25. Obsolescence of
				  Nondepreciable Property
26.
				  Professional Expenses
27.
				  Rentals
28. Repairs
29. Research and Experimental
				  Expenditures
30. Soil and Water
				  Conservation Expenditures
31.
				  Trademark and Trade Name Expenditures
32. Traveling Expenses
33. Worthless Securities