Intangibles must be amortized over a 15-year life for tax purposes, regardless of their actual useful life, according to the IRS regulations. This rule applies to most intangible assets acquired after August 10, 1993, and to some acquired after July 25, 1991.

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197 Intangibles

Question 77

Multiple Choice

197 intangibles:

A) Are amortized based on current fair market value rather than their actual cost.
B) Must be amortized over a 15 year life, regardless of their actual life.
C) Include intangible assets created and not purchased by the taxpayer.
D) Do not include purchased goodwill or going-concern value.

Correct Answer: