Election to capitalize Sample Clauses

Election to capitalize. A taxpayer may elect to treat employee compensa- tion, overhead, or de minimis costs paid in the process of investigating or oth- erwise pursuing a transaction described in paragraph (a) of this section as amounts that facilitate the trans- action. The election is made separately for each transaction and applies to em- ployee compensation, overhead, or de minimis costs, or to any combination thereof. For example, a taxpayer may elect to treat overhead and de minimis costs, but not employee compensation, as amounts that facilitate the trans- action. A taxpayer makes the election by treating the amounts to which the election applies as amounts that facili- xxxx the transaction in the taxpayer’s timely filed original federal income tax return (including extensions) for the taxable year during which the amounts are paid. In the case of an affiliated group of corporations filing a xxxxxxx- dated return, the election is made sepa- rately with respect to each member of the group, and not with respect to the group as a whole. In the case of an S corporation or partnership, the elec- tion is made by the S corporation or by the partnership, and not by the share- holders or partners. An election made under this paragraph (d)(4) is revocable with respect to each taxable year for which made only with the consent of the Commissioner.