CONSISTENT AMORTIZATION OF PERIODS FOR INTANGIBLES.

SEC. 902. CONSISTENT AMORTIZATION OF PERIODS FOR INTANGIBLES.(a) Start-Up Expenditures.—(1) Allowance of deduction.—Paragraph (1) of section 195(b) (relating to start-up expenditures) is amended to read as follows:“(1) Allowance of deduction.—If a taxpayer elects the application of this subsection with respect to any start-up expenditures—“(A) the taxpayer shall be allowed a deduction for the taxable year in which the active trade or business begins in an amount equal to the lesser of—“(i) the amount of start-up expenditures with respect to the active trade or business, or“(ii) $5,000, reduced (but not below zero) by the amount by which such start-up expenditures exceed $50,000, and“(B) the remainder of such start-up expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the active trade or business begins.”.(2) Conforming amendment.—Subsection (b) of section 195 is amended by striking “Amortize” and inserting “Deduct” in the heading.(b) Organizational Expenditures.—Subsection (a) of section 248 (relating to organizational expenditures) is amended to read as follows:“(a) Election to Deduct.—If a corporation elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenditures—“(1) the corporation shall be allowed a deduction for the taxable year in which the corporation begins business in an amount equal to the lesser of—“(A) the amount of organizational expenditures with respect to the taxpayer, or“(B) $5,000, reduced (but not below zero) by the amount by which such organizational expenditures exceed $50,000, and“(2) the remainder of such organizational expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the corporation begins business.”.(c) Treatment of Organizational and Syndication Fees or Partnerships.—(1) In general.—Section 709(b) (relating to amortization of organization fees) is amended by redesignating paragraph (2) as paragraph (3) and by amending paragraph (1) to read as follows:“(1) Allowance of deduction.—If a taxpayer elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenses—118 STAT. 1652“(A) the taxpayer shall be allowed a deduction for the taxable year in which the partnership begins business in an amount equal to the lesser of—“(i) the amount of organizational expenses with respect to the partnership, or“(ii) $5,000, reduced (but not below zero) by the amount by which such organizational expenses exceed $50,000, and“(B) the remainder of such organizational expenses shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the partnership begins business.“(2) Dispositions before close of amortization period.—In any case in which a partnership is liquidated before the end of the period to which paragraph (1)(B) applies, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted to the extent allowable under section 165.”.(2) Conforming amendment.—Subsection (b) of section 709 is amended by striking “Amortization” and inserting “Deduction” in the heading.(d) Effective Date.—The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.