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(A) paid or incurred in connection
with--
(i) investigating the creation or
acquisition of an active trade or
business, or
(ii) creating an active trade or
business, or
(iii) any activity engaged in for
profit and for the production of income
before the day on which the active trade
or business begins, in anticipation of
such activity becoming an active trade
or business, and
(B) which, if paid or incurred in
connection with the operation of an existing
active trade or business (in the same field
as the trade or business referred to in
subparagraph (A)), would be allowable as a
deduction for the taxable year in which paid
or incurred.
The term “start-up expenditure” does not include
any amount with respect to which a deduction is
allowable under section 163(a), 164, or 174.
(2) Beginning of trade or business.--
(A) In general.--Except as provided in
subparagraph (B), the determination of when
an active trade or business begins shall be
made in accordance with such regulations as
the Secretary may prescribe.
(B) Acquired trade or business.--An
acquired active trade or business shall be
treated as beginning when the taxpayer
acquires it.
(d) Election.--
(1) Time for making election.--An election
under subsection (b) shall be made not later than
the time prescribed by law for filing the return
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