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amortize
(redirected from amortizable)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia 0.01 sec.
amortize
To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. Likewise, an investor will usually amortize the premium each year on a bond purchased at a price above its principal.


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195(c) requirements are not met, the costs are not deductible or amortizable.
Taxpayers also need to recognize that IRC section 197 includes covenants as an amortizable intangible with a 15-year useful life if purchased in connection with a business acquisition.
By allowing one standard amortization deduction for an expansive list of intangibles--so-called amortizable section 197 intangibles(3)--Congress sought to settle a heavily litigated area of tax law.
 
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