26 U.S.C. § 178 : US Code - Section 178: Amortization of cost of acquiring a lease

Search 26 U.S.C. § 178 : US Code - Section 178: Amortization of cost of acquiring a lease

(a) General rule
In determining the amount of the deduction allowable to a lessee
for exhaustion, wear and tear, obsolescence, or amortization in
respect of any cost of acquiring the lease, the term of the lease
shall be treated as including all renewal options (and any other
period for which the parties reasonably expect the lease to be
renewed) if less than 75 percent of such cost is attributable to
the period of the term of the lease remaining on the date of its
acquisition.
(b) Certain periods excluded
For purposes of subsection (a), in determining the period of the
term of the lease remaining on the date of acquisition, there shall
not be taken into account any period for which the lease may
subsequently be renewed, extended, or continued pursuant to an
option exercisable by the lessee.