# Deductions for Transfers of Property
> **IRS** · Final regulations. · Published 1995-07-19 · Effective 1995-07-19 · 60 FR 36995
## Document
- **Document number:** 95-17494
- **Category:** tax-irs
- **Sub-agency:** IRS
- **Federal Register citation:** 60 FR 36995
- **CFR reference:** 26 CFR 1
- **Publication date:** 1995-07-19
- **Effective date:** 1995-07-19
- **Treasury docket:** TD 8599
## Abstract

This document contains final regulations concerning deductions for transfers of property. The regulations amend the special rule that required an employer to deduct and withhold income tax as a prerequisite for claiming a deduction for property transferred to an employee in connection with the performance of services. Under the former regulation, employers that failed to deduct and withhold income tax were denied a deduction even where the employee reported the income and paid the tax. The new rules permit service recipients to claim a deduction for the amount included in the service provider's gross income. The service provider will be deemed to have included an amount in gross income if the service recipient provides a timely Form W-2 or 1099, as appropriate. These regulations apply to all service recipients who transfer property in connection with the performance of services.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1995/07/19/95-17494/deductions-for-transfers-of-property)
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