### Question
How is the "applicable period" defined?


### Answer
The term **applicable period** is defined in *26 U.S.C. § 264* as follows -

> the 12-month period beginning on the date the policy is issued (and each successive 12-month period thereafter) unless the taxpayer elects a number of months (not greater than 12) other than such 12-month period to be its applicable period

#### Citation:
  - *26 U.S.C. § 264*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

