35 Miss. Admin. Code Pt. III, Subpt. 5, Ch. 03 — Taxes Paid as Business Expense

100 Only the following taxes shall be allowed as a business expense deduction in computing
net income for the taxable year within which paid or accrued, according to the method of
accounting used in computing taxable income:

# 1.

State and local, and foreign, real property taxes.

# 2.

State and local personal property taxes.

# 3.

Cigar and cigarette taxes, gasoline taxes, and sales and use taxes if included in
business gross income, or if incurred as an item of expense in a trade or business or
in the production of taxable income.
101 In addition, there shall be allowed as a business expense deduction state and local taxes, not
described in the preceding section and not otherwise specifically excluded under the
following section of this chapter, which are paid or accrued within the taxable year in
carrying on a trade or business.
102 The following taxes shall not be allowed as a business expense deduction in computing net
income:
1. Federal and state income taxes.
2. Any taxes based on or measured by net income.
3. Estate and inheritance taxes.

# 4.

Gift taxes.

# 5.

Cigar and cigarette taxes, gasoline taxes, and sales and use taxes if not included in
business gross income, or if not incurred as an item of expense in a trade or
business.
103 To the extent that a specific tax is deductible under both Federal and State Law, the
Commissioner will follow Federal Rules, Regulations and Revenue Procedures relating to
the tax treatment of the specific tax.
104 (Reserved)
105 (Reserved)