If an election is made to defer deduction of research expenditures, the amortization period is based on the expected life of the research project if less than 60 months.

Question

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The amortization period for deferred research expenditures is statutorily set at 60 months or more, starting with the midpoint of the tax year in which the expenditures are paid or incurred, and is not based on the expected life of the research project.

If an Election Is Made to Defer Deduction of Research