DMarkM1,
Thanks for the reply back.
The agency is not a charitable organization.
I might have made a mistake when I mentioned code 265.
Following is actually what I was asking about and was wondering how it applies at deducting my expenses. Not fully understanding what it says, I am guessing its basically saying I cannot deduct my expenses--but can you please translate it and inform me what it says and how it applies to my situation!:
Thanks!
Internal Revenue Code Section 265(a)(1)
Expenses and interest relating to tax-exempt income
(a) General rule.
No deduction shall be allowed for-
(1) Expenses.
Any amount otherwise allowable as a deduction which is allocable to one or more
classes of income other than interest (whether or not any amount of income of
that class or classes is received or accrued) wholly exempt from the taxes
imposed by this subtitle, or any amount otherwise allowable under section 212
(relating to expenses for production of income) which is allocable to interest
(whether or not any amount of such interest is received or accrued) wholly
exempt from the taxes imposed by this subtitle.
