TITLE 26 - US CODE - PART I - DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC.

26 USC 61 - Gross income defined

(a) General definition 
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(4) Interest;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Alimony and separate maintenance payments;
(9) Annuities;
(10) Income from life insurance and endowment contracts;
(11) Pensions;
(12) Income from discharge of indebtedness;
(13) Distributive share of partnership gross income;
(14) Income in respect of a decedent; and
(15) Income from an interest in an estate or trust.
(b) Cross references 
For items specifically included in gross income, see part II (sec. 71 and following). For items specifically excluded from gross income, see part III (sec. 101 and following).

26 USC 62 - Adjusted gross income defined

(a) General rule 
For purposes of this subtitle, the term adjusted gross income means, in the case of an individual, gross income minus the following deductions:
(1) Trade and business deductions 
The deductions allowed by this chapter (other than by part VII of this subchapter) which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.
(2) Certain trade and business deductions of employees 

(A) Reimbursed expenses of employees 
The deductions allowed by part VI (section 161 and following) which consist of expenses paid or incurred by the taxpayer, in connection with the performance by him of services as an employee, under a reimbursement or other expense allowance arrangement with his employer. The fact that the reimbursement may be provided by a third party shall not be determinative of whether or not the preceding sentence applies.
(B) Certain expenses of performing artists 
The deductions allowed by section 162 which consist of expenses paid or incurred by a qualified performing artist in connection with the performances by him of services in the performing arts as an employee.
(C) Certain expenses of officials 
The deductions allowed by section 162 which consist of expenses paid or incurred with respect to services performed by an official as an employee of a State or a political subdivision thereof in a position compensated in whole or in part on a fee basis.
(D) Certain expenses of elementary and secondary school teachers 
In the case of taxable years beginning during 2002, 2003, 2004, 2005, 2006, or 2007, the deductions allowed by section 162 which consist of expenses, not in excess of $250, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.
(E) Certain expenses of members of reserve components of the Armed Forces of the United States 
The deductions allowed by section 162 which consist of expenses, determined at a rate not in excess of the rates for travel expenses (including per diem in lieu of subsistence) authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, paid or incurred by the taxpayer in connection with the performance of services by such taxpayer as a member of a reserve component of the Armed Forces of the United States for any period during which such individual is more than 100 miles away from home in connection with such services.
(3) Losses from sale or exchange of property 
The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of property.
(4) Deductions attributable to rents and royalties 
The deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for production of income), and by section 611 (relating to depletion) which are attributable to property held for the production of rents or royalties.
(5) Certain deductions of life tenants and income beneficiaries of property 
In the case of a life tenant of property, or an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the deduction allowed by section 611.
(6) Pension, profit-sharing, and annuity plans of self-employed individuals 
In the case of an individual who is an employee within the meaning of section 401 (c)(1), the deduction allowed by section 404.
(7) Retirement savings 
The deduction allowed by section 219 (relating to deduction of certain retirement savings).
[(8) Repealed. Pub. L. 104–188, title I, § 1401(b)(4), Aug. 20, 1996, 110 Stat. 1788] 
(9) Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits 
The deductions allowed by section 165 for losses incurred in any transaction entered into for profit, though not connected with a trade or business, to the extent that such losses include amounts forfeited to a bank, mutual savings bank, savings and loan association, building and loan association, cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar class of deposit.
(10) Alimony 
The deduction allowed by section 215.
(11) Reforestation expenses 
The deduction allowed by section 194.
(12) Certain required repayments of supplemental unemployment compensation benefits 
The deduction allowed by section 165 for the repayment to a trust described in paragraph (9) or (17) of section 501(c) of supplemental unemployment compensation benefits received from such trust if such repayment is required because of the receipt of trade readjustment allowances under section 231 or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).
(13) Jury duty pay remitted to employer 
Any deduction allowable under this chapter by reason of an individual remitting any portion of any jury pay to such individuals employer in exchange for payment by the employer of compensation for the period such individual was performing jury duty. For purposes of the preceding sentence, the term jury pay means any payment received by the individual for the discharge of jury duty.
(14) Deduction for clean-fuel vehicles and certain refueling property 
The deduction allowed by section 179A.
(15) Moving expenses 
The deduction allowed by section 217.
(16) Archer MSAs 
The deduction allowed by section 220.
(17) Interest on education loans 
The deduction allowed by section 221.
(18) Higher education expenses 
The deduction allowed by section 222.
(19) Health savings accounts 
The deduction allowed by section 223.
(20) Costs involving discrimination suits, etc. 
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code[1] or a claim made under section 1862(b)(3)(A) of the Social Security Act (42 U.S.C. 1395y (b)(3)(A)). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayers gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.
(21) Attorneys fees relating to awards to whistleblowers 
Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award under section 7623 (b) (relating to awards to whistleblowers). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayers gross income for the taxable year on account of such award.

Nothing in this section shall permit the same item to be deducted more than once.

(b) Qualified performing artist 

(1) In general 
For purposes of subsection (a)(2)(B), the term qualified performing artist means, with respect to any taxable year, any individual if
(A) such individual performed services in the performing arts as an employee during the taxable year for at least 2 employers,
(B) the aggregate amount allowable as a deduction under section 162 in connection with the performance of such services exceeds 10 percent of such individuals gross income attributable to the performance of such services, and
(C) the adjusted gross income of such individual for the taxable year (determined without regard to subsection (a)(2)(B)) does not exceed $16,000.
(2) Nominal employer not taken into account 
An individual shall not be treated as performing services in the performing arts as an employee for any employer during any taxable year unless the amount received by such individual from such employer for the performance of such services during the taxable year equals or exceeds $200.
(3) Special rules for married couples 

(A) In general 
Except in the case of a husband and wife who lived apart at all times during the taxable year, if the taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the taxpayer and his spouse file a joint return for the taxable year.
(B) Application of paragraph (1) 
In the case of a joint return
(i) paragraph (1) (other than subparagraph (C) thereof) shall be applied separately with respect to each spouse, but
(ii) paragraph (1)(C) shall be applied with respect to their combined adjusted gross income.
(C) Determination of marital status 
For purposes of this subsection, marital status shall be determined under section 7703 (a).
(D) Joint return 
For purposes of this subsection, the term joint return means the joint return of a husband and wife made under section 6013.
(c) Certain arrangements not treated as reimbursement arrangements 
For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if
(1) such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or
(2) such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement.

The substantiation requirements of the preceding sentence shall not apply to any expense to the extent that substantiation is not required under section 274 (d) for such expense by reason of the regulations prescribed under the 2nd sentence thereof.

(d) Definition; special rules 

(1) Eligible educator 

(A) In general 
For purposes of subsection (a)(2)(D), the term eligible educator means, with respect to any taxable year, an individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.
(B) School 
The term school means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.
(2) Coordination with exclusions 
A deduction shall be allowed under subsection (a)(2)(D) for expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135, 529 (c)(1), or 530 (d)(2) for the taxable year.
(e) Unlawful discrimination defined 
For purposes of subsection (a)(20), the term unlawful discrimination means an act that is unlawful under any of the following:
(1) Section 302 of the Civil Rights Act of 1991 (2 U.S.C. 1202).[2]
(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).
(3) The National Labor Relations Act (29 U.S.C. 151 et seq.).
(4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).
(5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623 or 633a).
(6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791 or 794).
(7) Section 510 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1140).
(8) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.).
(9) The Employee Polygraph Protection Act of 1988 (29 U.S.C. 2001 et seq.).
(10) The Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102 et seq.).
(11) Section 105 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2615).
(12) Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services).
(13) Section 1977, 1979, or 1980 of the Revised Statutes (42 U.S.C. 1981, 1983, or 1985).
(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2, 2000e–3, or 2000e–16).
(15) Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617).
(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203).
(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law.
(18) Any provision of Federal, State, or local law, or common law claims permitted under Federal, State, or local law
(i) providing for the enforcement of civil rights, or
(ii) regulating any aspect of the employment relationship, including claims for wages, compensation, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.
[1] So in original. Probably should be followed by a comma.
[2] See References in Text note below.

26 USC 63 - Taxable income defined

(a) In general 
Except as provided in subsection (b), for purposes of this subtitle, the term taxable income means gross income minus the deductions allowed by this chapter (other than the standard deduction).
(b) Individuals who do not itemize their deductions 
In the case of an individual who does not elect to itemize his deductions for the taxable year, for purposes of this subtitle, the term taxable income means adjusted gross income, minus
(1) the standard deduction, and
(2) the deduction for personal exemptions provided in section 151.
(c) Standard deduction 
For purposes of this subtitle
(1) In general 
Except as otherwise provided in this subsection, the term standard deduction means the sum of
(A) the basic standard deduction, and
(B) the additional standard deduction.
(2) Basic standard deduction 
For purposes of paragraph (1), the basic standard deduction is
(A) 200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of
(i) a joint return, or
(ii) a surviving spouse (as defined in section 2 (a)),
(B) $4,400 in the case of a head of household (as defined in section 2 (b)), or
(C) $3,000 in any other case.
(3) Additional standard deduction for aged and blind 
For purposes of paragraph (1), the additional standard deduction is the sum of each additional amount to which the taxpayer is entitled under subsection (f).
(4) Adjustments for inflation 
In the case of any taxable year beginning in a calendar year after 1988, each dollar amount contained in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1 (f)(3) for the calendar year in which the taxable year begins, by substituting for calendar year 1992 in subparagraph (B) thereof
(i) calendar year 1987 in the case of the dollar amounts contained in paragraph (2)(B), (2)(C), or (5)(A) or subsection (f), and
(ii) calendar year 1997 in the case of the dollar amount contained in paragraph (5)(B).
(5) Limitation on basic standard deduction in the case of certain dependents 
In the case of an individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individuals taxable year begins, the basic standard deduction applicable to such individual for such individuals taxable year shall not exceed the greater of
(A) $500, or
(B) the sum of $250 and such individuals earned income.
(6) Certain individuals, etc., not eligible for standard deduction 
In the case of
(A) a married individual filing a separate return where either spouse itemizes deductions,
(B) a nonresident alien individual,
(C) an individual making a return under section 443 (a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or
(D) an estate or trust, common trust fund, or partnership,

the standard deduction shall be zero.

(d) Itemized deductions 
For purposes of this subtitle, the term itemized deductions means the deductions allowable under this chapter other than
(1) the deductions allowable in arriving at adjusted gross income, and
(2) the deduction for personal exemptions provided by section 151.
(e) Election to itemize 

(1) In general 
Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. For purposes of this subtitle, the determination of whether a deduction is allowable under this chapter shall be made without regard to the preceding sentence.
(2) Time and manner of election 
Any election under this subsection shall be made on the taxpayers return, and the Secretary shall prescribe the manner of signifying such election on the return.
(3) Change of election 
Under regulations prescribed by the Secretary, a change of election with respect to itemized deductions for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations
(A) the spouse makes a change of election with respect to itemized deductions, for the taxable year covered in such separate return, consistent with the change of treatment sought by the taxpayer, and
(B) the taxpayer and his spouse consent in writing to the assessment (within such period as may be agreed on with the Secretary) of any deficiency, to the extent attributable to such change of election, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law.

This paragraph shall not apply if the tax liability of the taxpayers spouse for the taxable year corresponding to the taxable year of the taxpayer has been compromised under section 7122.

(f) Aged or blind additional amounts 

(1) Additional amounts for the aged 
The taxpayer shall be entitled to an additional amount of $600
(A) for himself if he has attained age 65 before the close of his taxable year, and
(B) for the spouse of the taxpayer if the spouse has attained age 65 before the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151 (b).
(2) Additional amount for blind 
The taxpayer shall be entitled to an additional amount of $600
(A) for himself if he is blind at the close of the taxable year, and
(B) for the spouse of the taxpayer if the spouse is blind as of the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151 (b).

For purposes of subparagraph (B), if the spouse dies during the taxable year the determination of whether such spouse is blind shall be made as of the time of such death.

(3) Higher amount for certain unmarried individuals 
In the case of an individual who is not married and is not a surviving spouse, paragraphs (1) and (2) shall be applied by substituting $750 for $600.
(4) Blindness defined 
For purposes of this subsection, an individual is blind only if his central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.
(g) Marital status 
For purposes of this section, marital status shall be determined under section 7703.

26 USC 64 - Ordinary income defined

For purposes of this subtitle, the term ordinary income includes any gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231 (b). Any gain from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as ordinary income shall be treated as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231 (b).

26 USC 65 - Ordinary loss defined

For purposes of this subtitle, the term ordinary loss includes any loss from the sale or exchange of property which is not a capital asset. Any loss from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as ordinary loss shall be treated as loss from the sale or exchange of property which is not a capital asset.

26 USC 66 - Treatment of community income

(a) Treatment of community income where spouses live apart 
If
(1) 2 individuals are married to each other at any time during a calendar year;
(2) such individuals
(A) live apart at all times during the calendar year, and
(B) do not file a joint return under section 6013 with each other for a taxable year beginning or ending in the calendar year;
(3) one or both of such individuals have earned income for the calendar year which is community income; and
(4) no portion of such earned income is transferred (directly or indirectly) between such individuals before the close of the calendar year,

then, for purposes of this title, any community income of such individuals for the calendar year shall be treated in accordance with the rules provided by section 879 (a).

(b) Secretary may disregard community property laws where spouse not notified of community income 
The Secretary may disallow the benefits of any community property law to any taxpayer with respect to any income if such taxpayer acted as if solely entitled to such income and failed to notify the taxpayers spouse before the due date (including extensions) for filing the return for the taxable year in which the income was derived of the nature and amount of such income.
(c) Spouse relieved of liability in certain other cases 
Under regulations prescribed by the Secretary, if
(1) an individual does not file a joint return for any taxable year,
(2) such individual does not include in gross income for such taxable year an item of community income properly includible therein which, in accordance with the rules contained in section 879 (a), would be treated as the income of the other spouse,
(3) the individual establishes that he or she did not know of, and had no reason to know of, such item of community income, and
(4) taking into account all facts and circumstances, it is inequitable to include such item of community income in such individuals gross income,

then, for purposes of this title, such item of community income shall be included in the gross income of the other spouse (and not in the gross income of the individual). Under procedures prescribed by the Secretary, if, taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either) attributable to any item for which relief is not available under the preceding sentence, the Secretary may relieve such individual of such liability.

(d) Definitions 
For purposes of this section
(1) Earned income 
The term earned income has the meaning given to such term by section 911 (d)(2).
(2) Community income 
The term community income means income which, under applicable community property laws, is treated as community income.
(3) Community property laws 
The term community property laws means the community property laws of a State, a foreign country, or a possession of the United States.

26 USC 67 - 2-percent floor on miscellaneous itemized deductions

(a) General rule 
In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the aggregate of such deductions exceeds 2 percent of adjusted gross income.
(b) Miscellaneous itemized deductions 
For purposes of this section, the term miscellaneous itemized deductions means the itemized deductions other than
(1) the deduction under section 163 (relating to interest),
(2) the deduction under section 164 (relating to taxes),
(3) the deduction under section 165 (a) for casualty or theft losses described in paragraph (2) or (3) of section 165 (c) or for losses described in section 165 (d),
(4) the deductions under section 170 (relating to charitable, etc., contributions and gifts) and section 642 (c) (relating to deduction for amounts paid or permanently set aside for a charitable purpose),
(5) the deduction under section 213 (relating to medical, dental, etc., expenses),
(6) any deduction allowable for impairment-related work expenses,
(7) the deduction under section 691 (c) (relating to deduction for estate tax in case of income in respect of the decedent),
(8) any deduction allowable in connection with personal property used in a short sale,
(9) the deduction under section 1341 (relating to computation of tax where taxpayer restores substantial amount held under claim of right),
(10) the deduction under section 72 (b)(3) (relating to deduction where annuity payments cease before investment recovered),
(11) the deduction under section 171 (relating to deduction for amortizable bond premium), and
(12) the deduction under section 216 (relating to deductions in connection with cooperative housing corporations).
(c) Disallowance of indirect deduction through pass-thru entity 

(1) In general 
The Secretary shall prescribe regulations which prohibit the indirect deduction through pass-thru entities of amounts which are not allowable as a deduction if paid or incurred directly by an individual and which contain such reporting requirements as may be necessary to carry out the purposes of this subsection.
(2) Treatment of publicly offered regulated investment companies 

(A) In general 
Paragraph (1) shall not apply with respect to any publicly offered regulated investment company.
(B) Publicly offered regulated investment companies 
For purposes of this subsection
(i) In general The term publicly offered regulated investment company means a regulated investment company the shares of which are
(I) continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended (15 U.S.C. 77a to 77aa)),
(II) regularly traded on an established securities market, or
(III) held by or for no fewer than 500 persons at all times during the taxable year.
(ii) Secretary may reduce 500 person requirement The Secretary may by regulation decrease the minimum shareholder requirement of clause (i)(III) in the case of regulated investment companies which experience a loss of shareholders through net redemptions of their shares.
(3) Treatment of certain other entities 
Paragraph (1) shall not apply
(A) with respect to cooperatives and real estate investment trusts, and
(B) except as provided in regulations, with respect to estates and trusts.
(d) Impairment-related work expenses 
For purposes of this section, the term impairment-related work expenses means expenses
(1) of a handicapped individual (as defined in section 190 (b)(3)) for attendant care services at the individuals place of employment and other expenses in connection with such place of employment which are necessary for such individual to be able to work, and
(2) with respect to which a deduction is allowable under section 162 (determined without regard to this section).
(e) Determination of adjusted gross income in case of estates and trusts 
For purposes of this section, the adjusted gross income of an estate or trust shall be computed in the same manner as in the case of an individual, except that
(1) the deductions for costs which are paid or incurred in connection with the administration of the estate or trust and which would not have been incurred if the property were not held in such trust or estate, and
(2) the deductions allowable under sections 642 (b), 651, and 661,

shall be treated as allowable in arriving at adjusted gross income. Under regulations, appropriate adjustments shall be made in the application of part I of subchapter J of this chapter to take into account the provisions of this section.

(f) Coordination with other limitation 
This section shall be applied before the application of the dollar limitation of the second sentence of section 162 (a) (relating to trade or business expenses).

26 USC 68 - Overall limitation on itemized deductions

(a) General rule 
In the case of an individual whose adjusted gross income exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of
(1) 3 percent of the excess of adjusted gross income over the applicable amount, or
(2) 80 percent of the amount of the itemized deductions otherwise allowable for such taxable year.
(b) Applicable amount 

(1) In general 
For purposes of this section, the term applicable amount means $100,000 ($50,000 in the case of a separate return by a married individual within the meaning of section 7703).
(2) Inflation adjustments 
In the case of any taxable year beginning in a calendar year after 1991, each dollar amount contained in paragraph (1) shall be increased by an amount equal to
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1 (f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 1990 for calendar year 1992 in subparagraph (B) thereof.
(c) Exception for certain itemized deductions 
For purposes of this section, the term itemized deductions does not include
(1) the deduction under section 213 (relating to medical, etc. expenses),
(2) any deduction for investment interest (as defined in section 163 (d)), and
(3) the deduction under section 165 (a) for casualty or theft losses described in paragraph (2) or (3) of section 165 (c) or for losses described in section 165 (d).
(d) Coordination with other limitations 
This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.
(e) Exception for estates and trusts 
This section shall not apply to any estate or trust.
(f) Phaseout of limitation 

(1) In general 
In the case of taxable years beginning after December 31, 2005, and before January 1, 2010, the reduction under subsection (a) shall be equal to the applicable fraction of the amount which would (but for this subsection) be the amount of such reduction.
(2) Applicable fraction 
For purposes of paragraph (1), the applicable fraction shall be determined in accordance with the following table:
(g) Termination 
This section shall not apply to any taxable year beginning after December 31, 2009.