Sec. 3107. Circulation expenditures

343 words·~2 min read·/bill/113/hr/1/ih/section-3107

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 173 is amended to read as follows: In the case of a taxpayer’s specified circulation expenditures— except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and the taxpayer shall— charge such expenditures to capital account, and be allowed an amortization deduction of such expenditures ratably over the 36-month period beginning with the midpoint of the month in which such expenditures are paid or incurred. For purposes of this section, the term specified circulation expenditures means 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.

If any property with respect to which specified circulation expenditures are paid or incurred is disposed, retired, or abandoned during the period during which such expenditures are allowed as an amortization deduction under this section, no deduction shall be allowed with respect to such expenditures on account of such disposition, retirement, or abandonment and such amortization deduction shall continue with respect to such expenditures. In the case of specified circulation expenditures paid or incurred in taxable years beginning before 2019— notwithstanding subsection (a), the applicable percentage of such expenditures shall be allowed as a deduction for the taxable year in which paid or incurred, and subsection

(a)shall apply to the remainder of such expenditures. For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table: In the case of taxable years beginning in: The applicable percentage is: 2016 75% 2017 50% 2018 25% The taxpayer may elect, at such time and in such form and manner as the Secretary shall prescribe, for paragraph

(1)not to apply for all taxable years beginning before 2019. Such election, once made, shall be irrevocable. . The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2015.