# 26 U.S.C. § 173: Circulation expenditures

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s173>. Cite pinpoints as 26 U.S.C. § 173(a)(1).

## § 173(a) General rule

Notwithstanding section 263, all expenditures (other than expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical) to establish, maintain, or increase the circulation of a newspaper, magazine, or other periodical shall be allowed as a deduction; except that the deduction shall not be allowed with respect to the portion of such expenditures as, under regulations prescribed by the Secretary, is chargeable to capital account if the taxpayer elects, in accordance with such regulations, to treat such portion as so chargeable. Such election, if made, must be for the total amount of such portion of the expenditures which is so chargeable to capital account, and shall be binding for all subsequent taxable years unless, upon application by the taxpayer, the Secretary permits a revocation of such election subject to such conditions as he deems necessary.

## § 173(b) Cross reference

For election of 3-year amortization of expenditures allowable as a deduction under subsection (a), see section 59(e).

## Regulations

- [Treas. Reg. § 1.173-1](/26/reg/1.173-1.md): Circulation expenditures. (interprets § 173)

## Leading cases

- [Florida Publishing Co. v. Commissioner, 64 T.C. 269 (1975)](https://www.courtlistener.com/opinion/4704043/florida-publishing-co-v-commissioner/)
- [Washington Post Co. v. United States, 405 F.2d 1279 (Ct. Cl. 1969)](https://www.courtlistener.com/opinion/283153/the-washington-post-company-v-the-united-states/)
- [Davee v. United States, 444 F.2d 557 (Ct. Cl. 1971)](https://www.courtlistener.com/opinion/297502/ken-m-davee-and-adeline-b-davee-v-the-united-states-elizabeth-kline/)

## Connections

Cites: § 59 Other definitions and special rules; § 263 Capital expenditures

Cited by: § 56 Adjustments in computing alternative minimum taxable income; § 59 Other definitions and special rules; § 1016 Adjustments to basis

Derived from: 1939 § 23(bb)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 65
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834
- 1982-09-03: [Pub. L. 97-248](/26/act/97-248.md), 96 Stat. 420
- 1983-01-12: [Pub. L. 97-448](/26/act/97-448.md), 96 Stat. 2400
- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 942
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2343
- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3435