Page:United States Statutes at Large Volume 68A.djvu/198

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INTERNAL REVENUE CODE OF 1954 (3) W H E N ELECTION MAY B E MADE.—• (A) W I T H O U T CONSENT.—-A taxpayer may, without the consent'

of the Secretary or his delegate, make an election under this subsection for his first taxable year which begins after December 31, 1953, and ends after the date of enactment of this title in which the taxpayer incurs real property taxes. Such an election shall be made not later than the time prescribed by law for filing the return for such year (including extensions thereof). (B) W I T H CONSENT.—A taxpayer may, with the consent of the Secretary or his delegate, make an election under this subsection a t any time. SEC. 462. RESERVES FOR ESTIMATED EXPENSES, ETC. (a) GENERAL RULE. — I n computing taxable income for

the taxable year, there shall be taken into account (in the discretion of the Secretary or his delegate) a reasonable addition to each reserve for estimated expenses to which this section applies. (b) ADJUSTMENTS W H E R E R E S E R V E BECOMES EXCESSIVE.—If it is

determined that the amount of any reserve for estimated expenses to which this section applies is (as of the close of the taxable year) excessive, then (under regulations prescribed by the Secretary or his delegate) such excess shall be taken into account in computing taxable income for the taxable year. (c) ESTIMATED E X P E N S E S TO W H I C H T H I S SECTION A P P L I E S. — (1) ELECTION OP BENEFITS.—This section shall apply to esti-

mated expenses if and only if the taxpayer makes an election under this section with respect to the trade or business to which such expenses are attributable. The election shall be made in such manner as the Secretary or his delegate may by regulations prescribe. No election may be made with respect to a trade or business if in computing taxable income the cash receipts and disbursements method of accounting is used with respect to such trade or business. (2) SCOPE OF ELECTION.—An election made under this section shall apply to all estimated expenses attributable to the trade or business. (3) W H E N ELECTION MAY B E MADE.— (A) W I T H O U T CONSENT.—A taxpayer

may, without the consent of the Secretary or his delegate, make an election under this section for his first taxable year (i) which begins after December 31, 1953, and ends after the date on which this title is enacted, and (ii) for which there are estimated expenses attributable to the trade or business. Such an election shall be made not later than the time prescribed by law for filing the return for such year (including extensions thereof). (B) W I T H CONSENT.—A taxpayer may, with the consent of the Secretary or his delegate, make an election under this section a t any time. (d) ESTIMATED E X P E N S E D E F I N E D. — (1) GENERAL RULE.—For purposes

of this section, the term "estimated expense" means a deduction allowable by this subtitle— (A) part or all of which would (but for this section) be required to be taken into account for a subsequent taxable year; § 461(c)(3)

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