Section 197

A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible.

Section 197. Intangible property is property that has value but cannot be seen or touched. The amount of such deduction shall be determined by amortizing the adjusted basis for purposes of determining gain of such intangible ratably over the 15 year period beginning with the month in which such intangible was acquired. These intangible assets must usually be amortized over 15 years.

The term amortizable section 197 intangible does not include any section 197 intangible acquired in a transaction one of the principal purposes of which is to avoid the requirement of subsection c 1 that the intangible be acquired after the date of the enactment of this section or to avoid the provisions of subparagraph a. The irs designates certain assets as intangible assets under section 197 of the internal revenue code. Section 197 intangibles generally you may amortize the capitalized costs of section 197 intangibles see section 197 intangibles defined later ratably over a 15 year period.

Section 197 amortization rules apply to some business assets but not to others. A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible.