Purchased goodwill is assigned a basis equal to cost, and developed or self-created goodwill is assigned a basis equal to one-fifteenth of the amount expended.

Name: Purchased goodwill is assigned a basis equal to cost, and developed or self-created goodwill is assigned a basis equal to one-fifteenth of the amount expended.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Developed or self-created goodwill is not assigned a specific basis by the IRS. It cannot be depreciated or amortized for tax purposes.

Purchased Goodwill Is Assigned a Basis Equal to Cost, and Developed