Section allows an amortization deduction for the capitalized costs of an amortizable section intangible and prohibits any other depreciation or amortization with respect to that property. Paragraphs b , c , and e of this section provide rules and definitions for determining whether property is a section intangible, and paragraphs d and e of this section provide rules and definitions for determining whether a section intangible is an amortizable section intangible.
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable.
A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section intangible. The amount of such deduction shall be determined by amortizing the adjusted basis for purposes of determining gain of such intangible ratably over the year period beginning with the month in which such intangible was acquired.
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