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Introduction›Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 162.—Trade or Business Expenses

Internal Revenue Bulletin 2005-19 · 2026-10-03 edition · updated 2026-10-04 · United States

26 CFR 1.162–1: Business expenses.

Medicaid rebates incurred by a pharmaceutical manufacturer are not ordinary and necessary business expenses deductible from gross income under § 162 but are purchase price adjustments that are subtracted from gross receipts in determining gross income. See Rev. Rul. 2005-28, page 997.

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