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Title 26 — Internal Revenue CodeRelease 119-73

§173 Circulation Expenditures

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter B— Computation of Taxable Income › Part VI— ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS › § 173

Last updated Apr 6, 2026|Official source

Summary

If you publish a newspaper, magazine, or other periodical, you can deduct what you spend to build, keep, or grow your circulation. The deduction does not cover buying land, buying depreciable property, or buying circulation by purchasing part of another publisher's business. You may instead elect, under IRS rules, to treat part of these costs as capital costs. That choice must cover the whole capital portion and stays binding for later years unless the IRS lets you revoke it. A separate rule lets you spread these deductible costs over three years.

Full Legal Text

Title 26, §173

Internal Revenue Code — Source: USLM XML via OLRC

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

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Subsec. (b). Pub. L. 100–647 substituted “section 59(e)” for “section 59(d)”. 1986—Subsec. (b). Pub. L. 99–514 substituted “section 59(d)” for “section 58(i)”. 1984—Subsec. (b). Pub. L. 98–369 substituted “3-year” for “10-year”. 1982—Pub. L. 97–248, § 201(d)(9)(A), designated existing provisions as subsec. (a), added subsec. (a) heading, and added subsec. (b). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an

Effective Date

note under section 55 of this title.

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.

Effective Date

of 1982 AmendmentAmendment by Pub. L. 97–248 applicable to taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of Pub. L. 97–248, set out as a note under section 5 of this title. Applicability of Certain

Amendments

by Pub. L. 99–514 in Relation to Treaty Obligations of United StatesFor applicability of amendment by Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100–647, set out as a note under section 861 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 173

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73