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you filed the original return. Your election is ir- revocable after the due date, including exten- sions, of your return. Disabled access credit. If you make your business accessible to persons with disabilities and your business is an eligible small business, you may be able to claim the disabled access credit. If you choose to claim the credit, you must reduce the amount you deduct or capital- ize by the amount of the credit. For more information, see Form 8826. Film and Television Production Costs Film and television production costs are gener- ally capital expenses. However, you can elect to deduct certain costs of qualified film, televi- sion, and live theatrical productions that begin before January 1, 2018. For more information, see section 181 and the related regulations. Certain qualified film, television, or live the- atrical productions acquired and placed in serv- ice after September 27, 2017, may be eligible for the special depreciation allowance under section 168(k). For more information, see Pub. 946, How to Depreciate Property. Repair and Maintenance Costs Generally, you can deduct amounts paid for re- pairs and maintenance to tangible property if the amounts paid are not otherwise required to be capitalized. However, you may elect to capi- talize amounts paid for repair and maintenance consistent with the treatment on your books and records. If you make this election, it applies to all amounts paid for repair and maintenance to tangible property that you treat as capital ex- penditures on your books and records for the tax year. How to make the election. To make the elec- tion to treat repairs and maintenance as capital expenditures, attach a statement titled “Section 1.263(a)-3(n) Election” to your timely filed return (including extensions). For more information on what to include in the statement, see Regula- tions section 1.263(a)-3(n). If you timely filed your return without making the election, you can still make the election by filing an amended re- turn within 6 months of the due date of the re- turn (excluding extensions). Attach the state- ment to the amended return and write “Filed pursuant to section 301.9100-2” on the state- ment. File the amended return at the same ad- dress you filed the original return. 8. Amortization Introduction Amortization is a method of recovering (deduct- ing) certain capital costs over a fixed period of time. It is similar to the straight line method of depreciation. The various amortizable costs covered in this chapter are included in the list below. How- ever, this chapter doesn't discuss amortization of bond premium. For information on that topic, see chapter 3 of Pub. 550, Investment Income and Expenses. Topics This chapter discusses: • Deducting amortization • Amortizing costs of starting a business • Amortizing costs of getting a lease • Amortizing costs of section 197 intangibles • Amortizing reforestation costs • Amortizing costs of geological and geophysical costs • Amortizing costs of pollution control facilities • Amortizing costs of research and experimentation • Amortizing costs of certain tax preferences Useful Items You may want to see: Publication 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization 6251 Alternative Minimum Tax—Individuals See chapter 13 for information about getting publications and forms. How To Deduct Amortization To deduct amortization that begins during the current tax year, complete Part VI of Form 4562 and attach it to your income tax return. To report amortization from previous years, in addition to amortization that begins in the cur- rent year, list on Form 4562 each item sepa- rately. For example, in 2017, you began to 544 550 946 3115 4562 6251 amortize a lease. In 2018, you began to amor- tize a second lease. Report amortization from the new lease on line 42 of your 2018 Form 4562. Report amortization from the 2017 lease on line 43 of your 2018 Form 4562. If you don't have any new amortizable ex- penses for the current year, you aren't required to complete Form 4562 (unless you are claim- ing depreciation). Report the current year's de- duction for amortization that began in a prior year directly on the “Other deduction” or “Other expense line” of your return. Starting a Business When you start a business, treat all eligible costs you incur before you begin operating the business as capital expenditures which are part of your basis in the business. Generally, you re- cover costs for particular assets through depre- ciation deductions. However, you generally can't recover other costs until you sell the busi- ness or otherwise go out of business. For a dis- cussion on how to treat these costs, see If your attempt to go into business is unsuccessful un- der Capital Expenses in chapter 1. For costs paid or incurred after September 8, 2008, you can deduct a limited amount of start-up and organizational costs. The costs that aren't deducted currently can be amortized ratably over a 180-month period. The amortiza- tion period starts with the month you begin op- erating your active trade or business. You aren't required to attach a statement to make this election. You can choose to forgo this election by affirmatively electing to capitalize your start-up costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business be- gins. Once made, the election to either amortize or capitalize start-up costs is irrevocable and applies to all start-up costs that are related to your trade or business. See Regulations sec- tions 1.195-1, 1.248-1, and 1.709-1. For costs paid or incurred after October 22, 2004, and before September 9, 2008, you can elect to deduct a limited amount of business start-up and organizational costs in the year your active trade or business begins. Any costs not deducted can be amortized ratably over a 180-month period, beginning with the month you begin business. If the election is made, you must attach any statement required by Regula- tions sections 1.195-1(b), 1.248-1(c), and 1.709-1(c), as in effect before September 9, 2008. Note. You can apply the provisions of Reg- ulations sections 1.195-1, 1.248-1, and 1.709-1 to all business start-up and organizational costs paid or incurred after October 22, 2004, provi- ded the period of limitations on assessment hasn't expired for the year of the election. Oth- erwise, for business start-up and organizational costs paid or incurred after October 22, 2004, and before September 9, 2008, the provisions under Regulations sections 1.195-1(b), 1.248-1(c), and 1.709-1(c), as in effect before September 9, 2008, will apply. For costs paid or incurred before October 23, 2004, you can elect to amortize business Page 28 Chapter 8 Amortization