Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<<Pray tell, kind Cat Fool, what words and gestures you may have used to distract the examiner whilst you transformed his 15-year intangibles [the contracts with known lives] right before his very eyes....>>

I'm not so sure...

My CD-ROM drive took a dump, so I can't really do the research. But covenants have been allowable for amortization for years...long before the 15 year amort. rules for intangables went into effect just a few years ago. And the amortization for the covenant was over the life of the covenant. That much I do know...or at least I think I know.

And I don't think that a contract (such as a covenant) is an "intangable" as defined in the law (such as goodwill, client lists, etc.). So I'm not so sure how dumb the auditor might have been. I'd almost bet my bottom dollar on the fact that you can amortize a covenant over the life of the covenant...and not over 15 years as an intangable.

But I'll have to wait until Monday afternoon...when the computer repair guys show up...to know for sure.

TMF Taxes
Roy

Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.