Page:United States Statutes at Large Volume 68A.djvu/116

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INTERNAL REVENUE CODE OF 1954

or replace. The determination of whether stock was issued to refund or replace bonds or debentures issued before October 1, 1942, or to refund or replace other preferred stock, shall be made under regulations prescribed by the Secretary or his delegate. SEC. 248. ORGANIZATIONAL EXPENDITURES. (a) ELECTION TO AMORTIZE.—The organizational expenditures of a

corporation may, at the election of the corporation (made in accordance with regulations prescribed by the Secretary or his delegate), be treated as deferred expenses. I n computing taxable income, such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the corporation (beginning with the month in which the corporation begins business). (b) ORGANIZATIONAL EXPENDITURES D E F I N E D. — 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) T I M E FOR AND SCOPE OF ELECTION.—The election provided by

subsection (a) may be made for any taxable year beginning after December 31, 1953, b u t 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. The election shall apply only with respect to expenditures paid or incurred on or after the date of enactment of this title. PART IX—ITEMS NOT DEDUCTIBLE Sec. Sec. Sec. Sec.

261. 262. 263. 264.

Sec. 265. Sec. 266. Sec. 267. Sec. 268. See. 269. Sec. 270. Sec. 271. Sec. 272. Sec. 273.

General rule for disallowance of deductions. Personal, living, and family expenses. Capital expenditures. Certain amounts paid in connection with insurance contracts. Expenses and interest relating to tax-exempt income. Carrying charges. Losses, expenses, and interest with respect to transactions between related taxpayers. Sale of land with unharvested crop. Acquisitions made to evade or avoid income tax. Limitation on deductions allowable to individuals in certain cases. Debts owed by political parties, etc. Disposal of coal. Holders of life or terminable interest.

SEC. 261. GENERAL RULE FOR DISALLOWANCE OF DEDUCTIONS.

In computing taxable income no deduction shall in any case be allowed in respect of the items specified in this part. SEC. 262. PERSONAL, LIVING, AND FAMILY EXPENSES. Except as otherwise expressly provided in this chapter, no deduction shall be allowed for personal, living, or family expenses. -i• i 247(b)(2)

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