ATX 2014

Amortization

Amortization is similar to the straight line method of depreciation in that you can take an annual deduction to recover certain capital costs over a fixed time period.

If you amortize property, the part you amortize does not qualify for the section 179 expense deduction or for depreciation.

Property that you can elect to amortize includes items such as:

Geological and geophysical expenditures (section 167 (h)).
Pollution control facilities (section 169, limited by section 291 for corporations).
Certain 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).
Optional write-off of certain tax preferences over the period specified in section 59(e).
Circulation expenditures (section 173) - 3 years,
Intangible drilling and development costs (section 263(c)) 60 months, and
Research and experimental expenditures (section 174(a)), mining exploration and development costs (sections 616(a) and 617(a)) - 10 years.
Certain section 179 intangibles.
Goodwill;
Going concern value;
Workforce in place;
Business books and records, operating systems, or any other information base;
A patent, copyright, formula, process, design, pattern, know-how, format, or similar item;
A customer-based intangible (e.g., composition of market or market share);
A supplier-based intangible;
A license, permit, or other right granted by a government unit;
A covenant not to compete entered into in connection with the acquisition of a business; and
A franchise, trademark, or trade name (including renewals).
Start-up and organizational costs.
Business start-up costs (section 195).
Organizational costs for a corporation (section 248).
Organizational costs for a partnership (section 709).