; and (B) by striking $50,000 and inserting $120,000 . (2) Adjustment for inflation Subsection (b) of section 195 of such Code is amended by adding at the end the following new paragraph: (4) Adjustment for inflation In the case of a taxable year beginning after December 31, 2020, the $20,000 and $120,000 amounts in paragraph (1)(A)(ii) shall each be increased by an amount equal to— (A) such amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2019 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000. . (d) Amortization treatment Subparagraph (B) of section 195(b)(1) of the Internal Revenue Code of 1986, as amended by subsection (a), is amended to read as follows: (B) the remainder of such start-up and organizational expenditures shall be charged to capital account and allowed as an amortization deduction determined by amortizing such expenditures ratably over the 15-year period beginning with the midpoint of the taxable year in which the active trade or business begins. . (e) Application to disregarded entities Subsection (c) of section 195 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended by adding at the end the following new paragraph: (4) Application to disregarded entities In the case of any entity with a single owner which is disregarded as an entity separate from its owner, this section shall be applied in the same manner as if such entity were a corporation. . (f) Allowance of deduction upon liquidation or disposition Section 195 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e) Allowance of deduction upon liquidation or disposition (1) Liquidation of a business entity In the case of a complete liquidation by the taxpayer of any corporation, S