Although goodwill created in a merger may not be amortized for shareholder reporting purposes, it may be amortized for Federal tax purposes.

Question

Quizplus · Accepted Answer

According to the IRS, goodwill created in a merger or acquisition is considered an intangible asset and is subject to amortization for tax purposes over a period of 15 years. This is different from shareholder reporting purposes, where goodwill is not amortized but is tested for impairment annually.

Although Goodwill Created in a Merger May Not Be Amortized