26 CFR § 1.72-3 - Excludable amounts not income.

---
identifier: "/us/cfr/t26/s1.72-3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.72-3 - Excludable amounts not income."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.72-3"
section_name: "Excludable amounts not income."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---


# 1.72-3 Excludable amounts not income.

In general, amounts received under contracts described in paragraph (a)(1) of § 1.72-2 are not to be included in the income of the recipient to the extent that such amounts are excludable from gross income as the result of the application of section 72 and the regulations thereunder.