amortize

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Amortization

1. A tax deduction for the gradual consumption of the value of an asset, especially an intangible asset. For example, if a company spends $1 million on a patent that expires in 10 years, it amortizes the expense by deducting $100,000 from its taxable income over the course of 10 years. It is often used interchangeably with depreciation, which technically refers to the same thing for tangible assets.

2. The act of repaying a loan in regular payments over a given period of time.

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.
References in periodicals archive ?
Hence, we recommend that a target's costs in a taxable sale of the target stock be treated as giving rise to a new amortizable intangible asset.
Under prior law, patents were amortizable over the remainder of the 14-year or 17-year lega life of the patent, unless the taxpayer could prove a shorter useful life.
Dan Rostenkowski (D- IL) on September 20, 1991, would provide for customer based and some other intangible assets, including goodwill, to be amortizable over a fixed 14-year life.
For organizational expenses to be amortizable, a company must incur them before the end of the taxable year in which business begins.
197(f)(9) intangible held by old target would not be an amortizable Sec.
The settlement offer will reduce taxpayers' basis in amortizable intangible assets by the greater of 15% or a 50% cost-recovery adjustment.
197 granted a 15-year amortizable life to intangible assets acquired after the enactment of the statute.
The FSA concluded that the transferred intangible assets were indeed amortizable.
In general, expenses incidental to securing a loan are nondeductible, but amortizable over the life of the loan.
In general, customer-structure intangibles acquired apart from going concerns were amortizable, whereas intangibles acquired as part of a going business were not.
As a result of this transaction, CoreLogic expects to realize cash tax benefits from certain acquired amortizable intellectual property, amortizable goodwill and net operating loss carry-forwards with an estimated present value of approximately $115 million.
Therefore, X may deduct $5,000 and the remainng portion of the amortizable amount of $29,000 ($36,000-$5,000) starting in 2009.