Reg. § 1.263(a)-6 Election to deduct or capitalize certain expenditures.

26 CFR § 1.263(a)-6eCFR, current through 2026-07-14

(a) In general Under certain provisions of the Internal Revenue Code (Code), taxpayers may elect to treat capital expenditures as deductible expenses or as deferred expenses, or to treat deductible expenses as capital expenditures.

(b) Election provisions The sections referred to in of this section include:

(1) Section (circulation expenditures);

(2) Section (research and experimental expenditures);

(3) Section (soil and water conservation expenditures; endangered species recovery expenditures);

(4) Section (election to expense certain depreciable business assets);

(5) Section (deduction for clean-fuel vehicles and certain refueling property);

(6) Section (deduction for capital costs incurred in complying with environmental protection agency sulfur regulations);

(7) Section (election to expense certain refineries);

(8) Section (energy efficient commercial buildings deduction);

(9) Section (election to expense advanced mine safety equipment);

(10) Section (expenditures by farmers for fertilizer);

(11) Section (treatment of certain qualified film and television productions);

(12) Section (expenditures to remove architectural and transportation barriers to the handicapped and elderly);

(13) Section (tertiary injectants);

(14) Section (treatment of reforestation expenditures);

(15) Section (start-up expenditures);

(16) Section (expensing of environmental remediation costs);

(17) Section (expensing of qualified disaster expenses);

(18) Section (organization expenditures of a corporation);

(19) Section (carrying charges);

(20) Section (development expenditures); and

(21) Section (organization and syndication fees of a partnership).

(c) Effective/applicability date

(1) In general This section applies to taxable years beginning on or after January 1, 2014. Except as provided in and of this section, § as contained in 26 CFR part 1 edition revised as of April 1, 2011, applies to taxable years beginning before January 1, 2014. For the effective dates of the enumerated election provisions, see those Code sections and the regulations under those sections.

(2) Early application of this section A taxpayer may choose to apply this section to taxable years beginning on or after January 1, 2012.

(3) Optional application of TD 9564 A taxpayer may choose to apply as contained in TD 9564 (76 FR 81060) December 27, 2011, to taxable years beginning on or after January 1, 2012, and before January 1, 2014.

[T.D. 9636, 78 FR 57745, Sept. 19, 2013]