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TITLE 26-INTERNAL REVENUE CODE (f) Rules applicable to assessments for depreciable property (1) Amounts treated as paid or incurred over 9-year period In the case of an assessment levied to defray expenditures for property described in clause (ii) of the last sentence of subsection (c)(1), if the amount of such assessment paid or incurred by the taxpayer during the tax- able year (determined without the application of this paragraph) is in excess of an amount equal to 10 percent of the aggregate amounts which have been and will be assessed as the taxpayer's share of thie expenditure s by the district for such property, and if such excess Is more than $500, the entire excess shall be treated as paid or incurred ratably over each of the 9 succeeding taxable years. (2) Disposition of land during 9-yeor period If paragraph (1) applies to an assessment and the land with respect to which such as- sessment was made is sold or otherwise dis- posed of by the taxpayer (other than by the reason of his death) during the 9 succeeding taxable years, any amount of the excess de- scribed in paragraph (1) which has not been treated as paid or incurred for a taxable year ending on or before the sale or other disposi- tion shall be added to the adjusted basis of such land immediately prior to its sale or other disposition and shall not thereafter be treated as paid or incurred ratably under paragraph (1). (3) Disposition by reason of death If paragraph (1) applies to an assessment ant the taxpayer dies during the 9 succeeding taxable years, any amount of the excess de- scribed in paragraph (1) which has not been treated as paid or incurred for a taxable year ending before his death shall be treated as paid or incurred in the taxable year in which he dies. (Aug. 16, 1954, ch. 736, 68A Stat. 67; Oct. 22, 1968, Pub. L. 90-630, § 5(a), (b), 82 Stat. 1329; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(a)(30), 1906(b)(13)(A), 90 Stat. 1769, 1834.) AMENDMENTS 1976-Subsec. (d)(l). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (d)(1)(A). Pub. L. 94-455, § 1901(a)(30), sub- stituted "August 16, 1954" for "the date on which this title is enacted" following "and ends after". Subsec. (d)(2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (el. Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". 1968-Subsec. (c)(1). Pub. L. 90-630, § 5(a), in the ma- terial following subpar. (B), designated as cl. (i) exist. ing provisions covering amounts which, if paid or in- curred by the taxpayer, would without regard to the exception constitute deductible expenditures, and added cl. (ii). Subsec. (f). Pub. L. 90-630, § 5(b), added subsec. (f). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (d)(1)(A) by section 1901(a)(30) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Section 5(c) of Pub. L. 90-630 provided that: "The amendments made by subsections (a) and (b) Eamend- ing subsec. (c)(i) and adding subsec. (f) of this section] shall apply to assessments levied after the date of the enactment of this Act [Oct. 22, 1968] in taxable years ending after such date." CROSS REFERENCES Exception from denial of deduction for capital ex- penditures, see section 263 of this title. Trade or business expenses deductible, see section 162 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 263, 1251, 1252 of this title. § 176. Payments with respect to employees of certain foreign corporations In the case of a domestic corporation, there shall be allowed as a deduction amounts (to the extent not compensated for) paid or incurred pursuant to an agreement entered into under section 3121(l) with respect to services per. formed by United States citizens employed by foreign subsidiary corporations. Any reimburse- ment of any amount previously allowed as a de- duction under this section shall be included in gross income for the taxable year in which re- ceived. (Added Sept. 1, 1954, ch. 1206, title II, § 210(a), 68 Stat. 1096.) § 177. Trademark and trade name expenditures (a) Election to amortize Any trademark or trade name expenditure paid or incurred during a taxable year begin- ning after December 31, 1955, may, at the elec- tion of the taxpayer (made in accordance with regulations prescribed by the Secretary), be treated as a deferred expense. In computing taxable income, all expenditures paid or In- curred during the taxable year which are so treated shall be allowed as a deduction ratably over such period of not less than 60 months (beginning with the first month in such taxable year) as may be selected by the taxpayer in making such election. The expenditures so treated are expenditures properly chargeable to capital account for purposes of section 1016(a)(1) (relating to adjustments to basis of property). (b) Trademark and trade name expenditures defined For purposes of subsection (a), the term "trademark or trade name expenditure" means any expenditure which- (1) is directly connected with the acquisi- tion, protection, expansion, registration (Fed- eral, State, or foreign), or defense of a trade- mark or trade name; (2) is chargeable to capital account; and (3) is not part of the consideration paid for a trademark, trade name, or business. (c) Time for and scope of election The election provided by subsection (a) shall be made within the time prescribed by law (in- cluding extensions thereof) for filing the return for the taxable year during which the expendi- ture is paid or incurred. The period selected by the taxpayer under subsection (a) with respect Page 180