IS GOODWILL AMORTIZATION DEDUCTIBLE FOR INCOME TAX ?
GPCA shouts,IS GOODWILL AMORTIZATION DEDUCTIBLE FOR INCOME TAX ?According to http://www.nysscpa.org/cpajournal/old/14152806.htm,Currently, IRC Reg. Sec. 1.167(a)-3 specifically prohibits the write off of "goodwill." Amortization is allowed on other intangible assets as long as the asset meets the following criteria established in Rev. Rul. 74-456: 1) A specific useful life can be determined and 2) the asset has a value separate and distinct from goodwill.
Goodwill is in fact amortizable, according to IRC 197
duggg: Your material is quite obsolete. [It's from 1993.] IRC Section 197 now provides a 15-year amortization of goodwill and similar intangible business assets for income tax purposes. There should be a really good discussion of this in an IRS Pub. I don't know the number. Anyone?--LoTax
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