Under the the IRS code section 197, "amortization of intangible assets are allowable using teh straight-line method over 15 years."

IRS code section 197 definition is very broad and specifically includes items such as goodwill, going concern value, customized software, information bases, customer lists, know how, licenses, permits, etc.

Furthermore, Reg. 1.197-2(b)(8) provides that IRC Sec. 197 intangibles include any license, permit, or other right granted by a governmental unit, even if the right is granted for an indefinite period (or is reasonably expected to be renewed for an indefinite period). These rights include, for example, a liquor license, a taxicab medallion (or license), an airport landing or takeoff right (sometimes referred to as a slot), a regulated airline route, or a television or radio broadcasting license.

But, IRS Code Section 197 IRC Sec. 197 specifically excludes assets such as:

a. Interests in a corporation, partnership, trust, or estate.

b. Interest under certain financial contracts such as existing futures contracts, foreign currency contracts, notional principal contracts,
interest rate swaps, or other similar financial contracts.

c. Certain “off-the-shelf” computer software.

d. Certain interests in films, sound recordings, videotapes, books, or other similar properties.

e. Certain interests in patents or copyrights.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Intangible assets are amortized over the useful lifestyle or lawful lifestyle to effectively spend its use for the company.But must be keep in mind the most important point is that Goodwill from intangible assets is not amortized.


above ground Swimming Pools

UNDER the FASB rule, Prior to 2001, the U.S. accounting rules required goodwill to be amortized to expense over a period not to exceed 40 years. However, in June 2001 the FASB issued its SFAS No. 142, Goodwill and Other Intangible Assets. This accounting pronouncement ended the automatic amortization of goodwill to expense for U.S. financial reporting.While goodwill is no longer amortized to expense in uniform increments, goodwill is to be measured annually to determine if there is an impairment loss. On the other hand, the Internal Revenue Code, Section 197, requires the systematic amortization of goodwill on a straight-line basis over fifteen years; the IRS now allows the amortization of goodwill for tax purposes using a 15 year life and straight-line amortization.