26 C.F.R. § 1.263(a)-0   Table of contents.


Title 26 - Internal Revenue


Title 26: Internal Revenue
PART 1—INCOME TAXES
Items Not Deductible

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§ 1.263(a)-0   Table of contents.

This section lists captioned paragraphs contained in §§1.263(a)–1 through 1.263(a)–5.

§1.263(a)–1  Capital expenditures; in general.

§1.263(a)–2  Examples of capital expenditures.

§1.263(a)–3  Election to deduct or capitalize certain expenditures.

§1.263(a)–4  Amounts paid to acquire or create intangibles.

(a) Overview.

(b) Capitalization with respect to intangibles.

(1) In general.

(2) Published guidance.

(3) Separate and distinct intangible asset.

(i) Definition.

(ii) Creation or termination of contract rights.

(iii) Amounts paid in performing services.

(iv) Creation of computer software.

(v) Creation of package design.

(4) Coordination with other provisions of the Internal Revenue Code.

(i) In general.

(ii) Example.

(c) Acquired intangibles.

(1) In general.

(2) Readily available software.

(3) Intangibles acquired from an employee.

(4) Examples.

(d) Created intangibles.

(1) In general.

(2) Financial interests.

(i) In general.

(ii) Amounts paid to create, originate, enter into, renew or renegotiate.

(iii) Renegotiate.

(iv) Coordination with other provisions of this paragraph (d).

(v) Coordination with §1.263(a)–5.

(vi) Examples.

(3) Prepaid expenses.

(i) In general.

(ii) Examples.

(4) Certain memberships and privileges.

(i) In general.

(ii) Examples.

(5) Certain rights obtained from a government agency.

(i) In general.

(ii) Examples.

(6) Certain contract rights.

(i) In general.

(ii) Amounts paid to create, originate, enter into, renew or renegotiate.

(iii) Renegotiate.

(iv) Right.

(v) De minimis amounts.

(vi) Exception for lessee construction allowances.

(vii) Examples.

(7) Certain contract terminations.

(i) In general.

(ii) Certain break-up fees.

(iii) Examples.

(8) Certain benefits arising from the provision, production, or improvement of real property.

(i) In general.

(ii) Exclusions.

(iii) Real property.

(iv) Impact fees and dedicated improvements.

(v) Examples.

(9) Defense or perfection of title to intangible property.

(i) In general.

(ii) Certain break-up fees.

(iii) Example.

(e) Transaction costs.

(1) Scope of facilitate.

(i) In general.

(ii) Treatment of termination payments.

(iii) Special rule for contracts.

(iv) Borrowing costs.

(v) Special rule for stock redemption costs of open-end regulated investment companies.

(2) Coordination with paragraph (d) of this section.

(3) Transaction.

(4) Simplifying conventions.

(i) In general.

(ii) Employee compensation.

(iii) De minimis costs.

(iv) Election to capitalize.

(5) Examples.

(f) 12-month rule.

(1) In general.

(2) Duration of benefit for contract terminations.

(3) Inapplicability to created financial interests and self-created amortizable section 197 intangibles.

(4) Inapplicability to rights of indefinite duration.

(5) Rights subject to renewal.

(i) In general.

(ii) Reasonable expectancy of renewal.

(iii) Safe harbor pooling method.

(6) Coordination with section 461.

(7) Election to capitalize.

(8) Examples.

(g) Treatment of capitalized costs.

(1) In general.

(2) Financial instruments.

(h) Special rules applicable to pooling.

(1) In general.

(2) Method of accounting.

(3) Adopting or changing to a pooling method.

(4) Definition of pool.

(5) Consistency requirement.

(6) Additional guidance pertaining to pooling.

(7) Example.

(i) [Reserved].

(j) Application to accrual method taxpayers.

(k) Treatment of related parties and indirect payments.

(l) Examples.

(m) Amortization.

(n) Intangible interests in land [Reserved]

(o) Effective date.

(p) Accounting method changes.

(1) In general.

(2) Scope limitations.

(3) Section 481(a) adjustment.

§1.263(a)–5  Amounts paid or incurred to facilitate an acquisition of a trade or business, a change in the capital structure of a business entity, and certain other transactions.

(a) General rule.

(b) Scope of facilitate.

(1) In general.

(2) Ordering rules.

(c) Special rules for certain costs.

(1) Borrowing costs.

(2) Costs of asset sales.

(3) Mandatory stock distributions.

(4) Bankruptcy reorganization costs.

(5) Stock issuance costs of open-end regulated investment companies.

(6) Integration costs.

(7) Registrar and transfer agent fees for the maintenance of capital stock records.

(8) Termination payments and amounts paid to facilitate mutually exclusive transactions.

(d) Simplifying conventions.

(1) In general.

(2) Employee compensation.

(i) In general.

(ii) Certain amounts treated as employee compensation.

(3) De minimis costs.

(i) In general.

(ii) Treatment of commissions.

(4) Election to capitalize.

(e) Certain acquisitive transactions.

(1) In general.

(2) Exception for inherently facilitative amounts.

(3) Covered transactions.

(f) Documentation of success-based fees.

(g) Treatment of capitalized costs.

(1) Tax-free acquisitive transactions [Reserved].

(2) Taxable acquisitive transactions.

(i) Acquirer.

(ii) Target.

(3) Stock issuance transactions [Reserved].

(4) Borrowings.

(5) Treatment of capitalized amounts by option writer.

(h) Application to accrual method taxpayers.

(i) [Reserved].

(j) Coordination with other provisions of the Internal Revenue Code.

(k) Treatment of indirect payments.

(l) Examples.

(m) Effective date.

(n) Accounting method changes.

(1) In general.

(2) Scope limitations.

(3) Section 481(a) adjustment.

[T.D. 9107, 69 FR 444, Jan. 5, 2004]

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