26 U.S.C. § 173 — Circulation expenditures

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 182 words · no verdicts yet

in plain englishAI-generated · not legal advice

Publishers can generally deduct spending meant to build up a newspaper, magazine, or periodical's circulation right away. Money spent buying land, depreciable property, or another publisher's business does not qualify. Publishers may instead choose to capitalize part of the cost.

(a) General rule: Even though section 263 would normally require certain costs to be capitalized instead of deducted, spending to establish, keep, or grow the circulation of a newspaper, magazine, or other periodical can be deducted right away. This does not include money spent buying land or depreciable property, or buying part of another publisher's newspaper, magazine, or periodical business. There is an exception: if the taxpayer elects, following IRS regulations, to treat part of this spending as a capital cost instead, that part is not deductible. If made, this election must cover the entire portion of spending being treated as capital, and it stays in effect for all future years unless the IRS allows the taxpayer to revoke it, under conditions the IRS sets. (b) Cross reference: To elect to spread, or "amortize," these capital-account expenditures over 3 years instead, see section 59(e).

the actual law source: uscode.house.gov ↗public domain

(a) General rule

Notwithstanding section 263, all expenditures (other than expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical) to establish, maintain, or increase the circulation of a newspaper, magazine, or other periodical shall be allowed as a deduction; except that the deduction shall not be allowed with respect to the portion of such expenditures as, under regulations prescribed by the Secretary, is chargeable to capital account if the taxpayer elects, in accordance with such regulations, to treat such portion as so chargeable. Such election, if made, must be for the total amount of such portion of the expenditures which is so chargeable to capital account, and shall be binding for all subsequent taxable years unless, upon application by the taxpayer, the Secretary permits a revocation of such election subject to such conditions as he deems necessary.

(b) Cross reference

For election of 3-year amortization of expenditures allowable as a deduction under subsection (a), see section 59(e).

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 65; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title II, § 201(d)(9)(A), formerly § 201(c)(9)(A), Sept. 3, 1982, 96 Stat. 420, renumbered § 201(d)(9)(A), Pub. L. 97–448, title III, § 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98–369, div. A, title VII, § 711(a)(3)(C), July 18, 1984, 98 Stat. 942; Pub. L. 99–514, title VII, § 701(e)(4)(D), Oct. 22, 1986, 100 Stat. 2343; Pub. L. 100–647, title I, § 1007(g)(5), Nov. 10, 1988, 102 Stat. 3435.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1976Amended · Pub. L. 94-455 · 90 Stat. 1834
1982Amended · Pub. L. 97-248 · 96 Stat. 420
1984Amended · Pub. L. 98-369 · 98 Stat. 942
1986Amended · Pub. L. 99-514 · 100 Stat. 2343
1988Amended · Pub. L. 100-647 · 102 Stat. 3435

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

all 0 arguments · sorted by: best

no arguments yet — make the first case