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Amortization - Description of Costs

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Amortization - Description of Costs


Only enter costs for which the amortization period begins during your tax year beginning in the current tax year.

Describe the costs you are amortizing. You may amortize the following:

  • Geological and geophysical expenditures (section 167(h))

  • Pollution control facilities (section 169)

  • Bond premiums (section 171)

  • Research and experimental expenditures (section 174)

  • The cost of acquiring a lease (section 178)

  • Qualified forestation and reforestation costs (section 194)

  • Qualified revitalization expenditures (section 1400I)

  • Optional write-off of certain tax preferences over the period specified in section 59(e).

  • Certain section 197 intangibles, including:
  1. Goodwill

  2. Going concern value

  3. Workforce in place

  4. Business books and records, operating systems, or any other information base

  5. A patent, copyright, formula, process, design, pattern, know-how, format, or similar item

  6. A customer-based intangible (e.g., composition of market or market share)

  7. A supplier-based intangible

  8. A license, permit, or other right granted by a governmental unit

  9. A covenant not to compete entered into in connection with the acquisition of a business

  10. Any franchise, trademark, or trade name.

  • Start-up and organizational costs

  • Creative property costs.

For more information see https://www.irs.gov/pub/irs-pdf/i4562.pdf

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Views: 1562 Created on: Jun 15, 2013
Date updated: Dec 02, 2021

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