# § 272. Disposal of coal or domestic iron ore
Where the disposal of coal or iron ore is covered by section 631, no deduction shall be allowed for expenditures attributable to the making and administering of the contract under which such disposition occurs and to the preservation of the economic interest retained under such contract, except that if in any taxable year such expenditures plus the adjusted depletion basis of the coal or iron ore disposed of in such taxable year exceed the amount realized under such contract, such excess, to the extent not availed of as a reduction of gain under section 1231, shall be a loss deductible under section 165(a). This section shall not apply to any taxable year during which there is no income under the contract.
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**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 82; Pub. L. 88–272, title II, § 227(a)(3), (b)(3), Feb. 26, 1964, 78 Stat. 98.)
## Editorial Notes
### Amendments
1964— inserted “or domestic iron ore” in section catchline, and “or iron ore” wherever appearing in text.
## Statutory Notes and Related Subsidiaries
### Effective Date of 1964 Amendment
> “The amendments made by this section [amending this section and sections 631, 1016, 1231, and 1402 and
>
> , The Public Health and Welfare] shall apply with respect to amounts received or accrued in taxable years beginning after
>
> , attributable to iron ore mined in such taxable years.”
, , , provided that: