Goodwill is amortized over 20 years for tax purposes while it remains as an intangible asset on the books indefinitely. Goodwill is considered a permanent book-tax difference.

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Goodwill is not amortized for tax purposes; instead, it is tested annually for impairment. For financial reporting purposes, goodwill is also not amortized but tested for impairment. This creates a temporary difference, not a permanent one, between book and tax treatments.

Goodwill Is Amortized Over 20 Years for Tax Purposes While