US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 280B

Demolition of structures

In the case of the demolition of any structure—
(1)
no deduction otherwise allowable under this chapter shall be allowed to the owner or lessee of such structure for—
(A)
any amount expended for such demolition, or
(B)
any loss sustained on account of such demolition; and
(2)
amounts described in paragraph (1) shall be treated as properly chargeable to capital account with respect to the land on which the demolished structure was located.

Pub. L. 94–455, title XXI, § 2124(b)(1)90 Stat. 1918Pub. L. 95–600, title VII, § 701(f)(5)92 Stat. 2902Pub. L. 96–541, § 2(b)94 Stat. 3204Pub. L. 97–34, title II, § 212(d)(2)(C)95 Stat. 239Pub. L. 98–369, div. A, title X, § 1063(a)98 Stat. 1047(Added , , ; amended , , ; , , ; , , ; , (b)(1), , .)

Editorial Notes

Amendments

Pub. L. 98–3691984— struck out “certain historic” before “structures” in section catchline, struck out heading “(a) General rule”, substituted “In the case of the demolition of any structure” for “In the case of the demolition of a certified historic structure (as defined in 48(g)(3)(A))” in text, and struck out subsecs. (b) and (c) which contained provisions relating to a special rule for registered historic districts and to the application of this section, respectively.

Pub. L. 97–34, § 212(d)(2)(C)(i)1981—Subsec. (a). , substituted “48(g)(3)(A)” for “section 191(d)(1)” in provisions preceding par. (1).

Pub. L. 97–34, § 212(d)(2)(C)(ii)Subsec. (b). , substituted “section 48(g)(3)(B)” for “section 191(d)(2)”.

Pub. L. 96–5411980—Subsec. (c). added subsec. (c).

Pub. L. 95–6001978—Subsec. (b). substituted “registered historic district (as defined in section 191(d)(2))” for “Registered Historic District” and “Secretary of the Interior has certified that such structure is not a certified historic structure, and that such structure is not of historic significance to the district, and if such certification occurs after the beginning of the demolition of such structure, the taxpayer has certified to the Secretary that, at the time of such demolition, he in good faith was not aware of the certification requirement by the Secretary of the Interior” for “Secretary of the Interior has certified, prior to the demolition of such structure, that such structure is not of historic significance to the district”.

Statutory Notes and Related Subsidiaries

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title X, § 1063(c)98 Stat. 1047Pub. L. 99–514, title XVIII, § 1878(h)100 Stat. 2904

“(1)
The amendments made by this section [amending this section] shall apply to taxable years ending after , but shall not apply to any demolition (other than of a certified historic structure) commencing before .
“(2)
For purposes of paragraph (1), if a demolition is delayed until the completion of the replacement structure on the same site, the demolition shall be treated as commencing when construction of the replacement structure commences.
“(3)
The amendments made by this section [amending this section] shall not apply to any demolition commencing before , pursuant to a bank headquarters building project if—
“(A)
on , a corporation was retained to advise the bank on the final completion of the project, and
“(B)
on , the Comptroller of the Currency approved the project.
“(4)
The amendments made by this section shall not apply to the remaining adjusted basis at the time of demolition of any structure if—
“(A)
such structure was used in the manufacture, storage, or distribution of lead alkyl antiknock products and intermediate and related products at facilities located in or near Baton Rouge, Louisiana, and Houston, Texas, owned by the same corporation, and
“(B)
demolition of at least one such structure at the Baton Rouge facility commenced before .”
, , , as amended by , , , provided that:

Effective Date of 1981 Amendment

Pub. L. 97–34section 212(e) of Pub. L. 97–34section 46 of this titleAmendment by applicable to expenditures incurred after , in taxable years ending after such date, see , set out as a note under .

Effective Date of 1978 Amendment

Pub. L. 95–600section 2124 of Pub. L. 94–455section 701(f)(8) of Pub. L. 95–600section 167 of this titleAmendment by effective as if included within the enactment of this section by , see , set out as an Effective and Termination Dates of 1978 Amendments note under .

Effective Date

Pub. L. 94–455, title XXI, § 2124(b)(3)90 Stat. 1918Pub. L. 96–541, § 2(e)(2)94 Stat. 3205, , , which had provided that enactment of this section by subsec. (b) shall apply with respect to demolitions commencing after , and before , was repealed by , , . See subsec. (c) of this section.