For purposes of this chapter, any amortizable section 197 intangible shall be treated as property which is of a character subject to the allowance for depreciation provided in section 167.
26 U.S. Code § 197 - Amortization of goodwill and certain other ...
197 is the smallest prime number that is the sum of seven consecutive primes: 17 + 19 + 23 + 29 + 31 + 37 + 41, and is the sum of the first twelve prime numbers: 2 + 3 + 5 + 7 + 11 + 13 + 17 + 19 + 23 + 29 + 31 + 37
See Code Section 197—determining tax treatment amortization of goodwill and certain other intangibles. Access any section from the IRC of 1986 on Tax Notes.
Section 197 intangibles must be amortized over a period of fifteen years starting from the month of the acquisition. The cost of the asset should be spread out evenly during this time period, and businesses can claim tax deductions on the amortized amount during the same time period.
You must amortize these costs if you hold the section 197 intangibles in connection with your trade or business or in an activity engaged in for the production of income.
Learn what Section 197 intangibles are, how to amortize them, key IRS rules, valuation challenges, and FAQs on selling, compliance, and tax treatment.
The meaning of the number 197: How is 197 spell, written in words, interesting facts, mathematics, computer science, numerology, codes. 197 in Roman Numerals and images.