Page:United States Statutes at Large Volume 94 Part 3.djvu/878

 94 STAT. 3522

PUBLIC LAW 96-605—DEC. 28, 1980

"(3) COMMUNITY PROPERTY LAWS.—The term 'community property laws' means the community property laws of a State, a foreign country, or a possession of the United States." (h) CLERICAL AMENDMENT.—The table of sections for part I of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 66. Treatment of community income where spouses live apart."

26 USC 66 note.

26 USC 195.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to calendar years beginning after December 31, 1980. SEC. 102. AMORTIZATION OF START-UP EXPENDITURES. (a) IN GENERAL.—Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: "SEC. 19.5. START-UP EXPENDITURES. "(a) ELECTION TO AMORTIZE.—Start-up expenditures may, at the election of the taxpayer, be treated as deferred expenses. 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 taxpayer (beginning with the month in which the business begins). "(h) START-UP EXPENDITURES.—For purposes of this section, the term 'start-up expenditure' means any amount— "(1) paid or incurred in connection with— "(A) investigating the creation or acquisition of an active trade or business, or "(B) creating an active trade or business, and "(2) which, if paid or incurred in connection with the expansion of an existing trade or business (in the same field as the trade or business referred to in paragraph (1)), would be allowable as a deduction for the taxable year in which paid or incurred. "(c) ELECTION.— "(1) TIME FOR MAKING ELECTION.—An

election under subsection (a) shall be made not later than the time prescribed by law for filing the return for the taxable year in which the business begins (including extensions thereof). "(2) SCOPE OF ELECTION.—The period selected under subsection

(a) shall be adhered to in computing taxable income for the taxable year for which the election is made and all subsequent taxable years. "(3) MANNER OF MAKING ELECTION.—An election under subsection (a) shall be made in such manner as the Secretary shall by regulations prescribe. "(d) BUSINESS BEGINNING.—For purposes of this section, an acquired trade or business shall be treated as beginning when the taxpayer acquires it." (b) CLERICAL AMENDMENT.—The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: "Sec. 195. Start-up expenditures."

26 USC 195 note.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to amounts paid or incurred after July 29, 1980, in taxable years ending after such date

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