
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC173]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
      PART VI--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS
 
Sec. 173. Circulation expenditures


(a) General rule

    Notwithstanding section 263, 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 shall be allowed as a 
deduction; except that the deduction shall not be allowed with respect 
to the portion of such expenditures as, under regulations prescribed by 
the Secretary, is chargeable to capital account if the taxpayer elects, 
in accordance with such regulations, to treat such portion as so 
chargeable. Such election, if made, must be for the total amount of such 
portion of the expenditures which is so chargeable to capital account, 
and shall be binding for all subsequent taxable years unless, upon 
application by the taxpayer, the Secretary permits a revocation of such 
election subject to such conditions as he deems necessary.

(b) Cross reference

            For election of 3-year amortization of expenditures 
        allowable as a deduction under subsection (a), see section 
        59(e).

(Aug. 16, 1954, ch. 736, 68A Stat. 65; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248, title 
II, Sec. 201(d)(9)(A), formerly Sec. 201(c)(9)(A), Sept. 3, 1982, 96 
Stat. 420, renumbered Sec. 201(d)(9)(A), Pub. L. 97-448, title III, 
Sec. 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98-369, div. 
A, title VII, Sec. 711(a)(3)(C), July 18, 1984, 98 Stat. 942; Pub. L. 
99-514, title VII, Sec. 701(e)(4)(D), Oct. 22, 1986, 100 Stat. 2343; 
Pub. L. 100-647, title I, Sec. 1007(g)(5), Nov. 10, 1988, 102 Stat. 
3435.)


                               Amendments

    1988--Subsec. (b). Pub. L. 100-647 substituted ``section 59(e)'' for 
``section 59(d)''.
    1986--Subsec. (b). Pub. L. 99-514 substituted ``section 59(d)'' for 
``section 58(i)''.
    1984--Subsec. (b). Pub. L. 98-369 substituted ``3-year'' for ``10-
year''.
    1982--Pub. L. 97-248, Sec. 201(d)(9)(A), designated existing 
provisions as subsec. (a), added subsec. (a) heading, and added subsec. 
(b).
    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' in two places.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to taxable years beginning 
after Dec. 31, 1986, with certain exceptions and qualifications, see 
section 701(f) of Pub. L. 99-514, set out as an Effective Date note 
under section 55 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective as if included in the 
provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 715 of Pub. L. 
98-369, set out as a note under section 31 of this title.


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-248 applicable to taxable years beginning 
after Dec. 31, 1982, see section 201(e)(1) of Pub. L. 97-248, set out as 
a note under section 5 of this title.


  Applicability of Certain Amendments by Pub. L. 99-514 in Relation to 
                   Treaty Obligations of United States

    For applicability of amendment by Pub. L. 99-514 notwithstanding any 
treaty obligation of the United States in effect on Oct. 22, 1986, with 
provision that for such purposes any amendment by title I of Pub. L. 
100-647 be treated as if it had been included in the provision of Pub. 
L. 99-514 to which such amendment relates, see section 1012(aa)(2), (4) 
of Pub. L. 100-647, set out as a note under section 861 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 56, 59, 312, 1016 of this 
title.
