California Revenue and Taxation Code

§ 24407

RTC § 24407 Effective Oct 7, 2005Div. 2 · Part 11 · Ch. 7 · Art. 2

Statute text

(a)The organizational expenditures of a corporation may, at the election of the corporation (made in accordance with regulations prescribed by the Franchise Tax Board), be treated as deferred expenses. In computing net income, the deferred expenses remaining, if any, after the application of subdivision (b) shall be allowed as a deduction ratably over that period of not less than 180 months as may be selected by the corporation (beginning with the month in which the corporation begins business).

(b)(1) The corporation shall be allowed a deduction for the deferred expenses under subdivision (a) in an amount equal to the lesser of either of the following:

(A)The amount of organizational expenditures of the taxpayer that are treated as deferred expenses under subdivision (a).

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Legislative history

Amended by Stats. 2005, Ch. 691, Sec. 66. Effective October 7, 2005.