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  • 1.  Goodwill

    Platinum Most Valuable Member
    Posted 07-21-2016 02:07 PM

    I have a new client that has goodwill on its books that the prior accountant never amortized.  At least some of the goodwill met the requirements to be amortized when it was purchased more than 3 years ago.  If the statute has expired for the year of the purchase, can business amortize the goodwill over the balance of the 15 years?  I know depreciation is "allowed or allowable", but I am never heard of it for the amortization of intangibles.

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    Ruth Sattig Betz
    RUTH A. SATTIG BETZ, CPA
    Farmingdale NY
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  • 2.  RE: Goodwill

    Gold Most Valuable Member
    Posted 07-21-2016 03:14 PM

    A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 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 15-year period beginning with the month in which such intangible was acquired.

     

    Guess that you lose all closed years and can amend the open years . 

     

     

     

    Regards,

     

    Stuart G. Lang, CPA, CGMA





    Original Message


  • 3.  RE: Goodwill

    Platinum Most Valuable Member
    Posted 07-24-2016 08:00 PM

    Ruth:

    You can do a catch-up on that. Take a look at the 3115 instructions.

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    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY

    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.