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signifying his election under section 177 and setting
forth the following:
(i) Name and address of the taxpayer, and the
taxable year involved;
(ii) An identification of the character and
amount of each expenditure to which the election
applies and the number of continuous months (not
less than 60) during which the expenditures are to
be ratably deducted; and
(iii) A declaration by the taxpayer that he
will make an accounting segregation on his books
and records of the trademark and trade name
expenditures for which the election has been made,
sufficient to permit an identification of the
character and amount of each such expenditure and
the amortization period selected for each
expenditure.
(2) The provisions of subparagraph (1) of this
paragraph shall apply to income tax returns and
statements required to be filed after May 4, 1960.
Elections properly made in accordance with the
provisions of Treasury Decision 6209, approved October
26, 1956 (21 F. R. 8319, C. B. 1956-2, 1370), continue
in effect.
The fact that petitioner’s election must be made in the tax
return for the taxable year in which the expenditures were
incurred supports our conclusion that section 177(a) applies only
to expenditures made during a taxable year.
Petitioner argues that its election was timely since it had
no prescribed due date for any income tax returns for 1983 and
1984, and its first opportunity to file an election under section
177(a) occurred in 1985 when petitioner first became subject to
Federal income tax. If timeliness of the election were the only
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