26 U.S.C. § 248
Organizational expenditures
# (a) Election to deduct
If a corporation elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenditures— (1) the corporation shall be allowed a deduction for the taxable year in which the corporation begins business in an amount equal to the lesser of— (A) the amount of organizational expenditures with respect to the taxpayer, or (B) $5,000, reduced (but not below zero) by the amount by which such organizational expenditures exceed $50,000, and (2) the remainder of such organizational expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the corporation begins business.
# (b) Organizational expenditures defined
The term “organizational expenditures” means any expenditure which— (1) is incident to the creation of the corporation; (2) is chargeable to capital account; and (3) is of a character which, if expended incident to the creation of a corporation having a limited life, would be amortizable over such life.
# (c) Time for and scope of election
The election provided by subsection (a) may be made for any taxable year but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The period so elected shall be adhered to in computing the taxable income of the corporation for the taxable year for which the election is made and all subsequent taxable years.
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Cited by 23
- 26 CFR § 1.1374-1A — Tax imposed on certain capital gains.
- 26 CFR § 1.167(a)-3 — Intangibles.
- 26 CFR § 1.170-3 — Contributions or gifts by corporations (before amendment by Tax Reform Act of 1969).
- 26 CFR § 1.170A-11 — Limitation on, and carryover of, contributions by corporations.
- 26 CFR § 1.172-2 — Net operating loss in case of a corporation.
- 26 CFR § 1.248-1 — Election to amortize organizational expenditures.
- 26 CFR § 1.263(a)-6 — Election to deduct or capitalize certain expenditures.
- 26 CFR § 1.535-2 — Adjustments to taxable income.
- 26 CFR § 1.545-2 — Adjustments to taxable income.
- 26 CFR § 1.818-2 — Accounting provisions.
- 26 CFR § 1.822-5 — Mutual insurance company taxable income.
- 26 CFR § 1.822-8 — Determination of taxable investment income.
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- 26 CFR § 1.852-3 — Investment company taxable income.
- 26 CFR § 1.857-2 — Real estate investment trust taxable income and net capital gain.
- 26 CFR § 301.6621-2T — Questions and answers relating to the increased rate of interest on substantial underpayments attributable to certain tax motivated transactions (temporary).
- 26 U.S.C. § 1363 — Effect of election on corporation
- 26 U.S.C. § 1375 — Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts
- 26 U.S.C. § 170 — Charitable, etc., contributions and gifts
- 26 U.S.C. § 535 — Accumulated taxable income
- 26 U.S.C. § 545 — Undistributed personal holding company income
- 26 U.S.C. § 834 — Determination of taxable investment income
- 26 U.S.C. § 852 — Taxation of regulated investment companies and their shareholders
- 26 U.S.C. § 857 — Taxation of real estate investment trusts and their beneficiaries
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