Amortization of start-up costs.

• Jurisdiction: United States
• Author: Davis, Jon E.
• Date: 01 April 1999

The IRS just released final regulations, effective for elections filed on or after Dec. 17, 1998, providing rules and procedures for electing to amortize start-up expenditures under Sec. 195. Sec. 195 generally provides that no deduction is allowed for start-up expenditures unless a taxpayer elects to amortize them over a period of not less than 60 months, beginning with the month in which the active trade or business begins.

The taxpayer must attach the election statement to his income tax...