Source: http://www.bna.com/Amortization-Intangibles-Tax-p7685/
Timestamp: 2015-02-28 15:53:27
Document Index: 37471874

Matched Legal Cases: ['§197', '§197', '§197', '§197', '§197', '§197', '§167', '§263', '§263', '§263', '§162', '§174', '§197', '§ 1972', '§ 1975', '§ 197', '§ 197', '§ 197', '§ 197', '§ 197', '§ 1971', '§ 197', '§ 197', '§ 197', '§ 197', '§ 1', '§ 1671', '§ 1', '§ 1', '§ 167', '§ 197', '§ 197', '§ 338', '§ 1', '§ 197']

Amortization of Intangibles (Portfolio 533) | Bloomberg BNA
Home Tax & Accounting Amortization of Intangibles (Portfolio 533) PORTFOLIO
Amortization of Intangibles (Portfolio 533) Tax Management Portfolio, Amortization of Intangibles, No. 533-3rd, describes: (1) the §197 rules on amortizing intangible assets (generally applicable to intangibles acquired after August 10, 1993); and (2) the rules on amortizing intangible assets that are not §197 intangibles. Price: $400 Print
Tax Management Portfolio, Amortization of Intangibles, No. 533-3rd, describes: (1) the §197 rules on amortizing intangible assets (generally applicable to intangibles acquired after August 10, 1993); and (2) the rules on amortizing intangible assets that are not §197 intangibles.This Portfolio discusses in depth §197 and its tax planning pitfalls and opportunities. This Portfolio also discusses the situations in which intangible assets are excluded from amortization under §197. Such intangibles may be amortizable under the rules of §167 and the regulations thereunder. Rules provided under §263(a) and the regulations thereunder are also discussed because the need to identify when expenditures create capitalizable intangible assets is crucial to knowing if amortization rules apply. However, the details of the guidance on capitalization are covered in other Portfolios which should be consulted for matters involving whether an expenditure should be capitalized (such as under §263 or §263A) or expensed (such as under §162 or §174).A discussion of pre-§197 law is included in the Worksheets as taxpayers may have such assets. In addition, the worksheets include a table with examples illustrating the various rules that might apply due to the interaction of the capitalization and amortization provisions.
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Annette Nellen (B.S., CSU, Northridge; MBA, Pepperdine University; J.D. Loyola Law School) is a Professor of Accounting & Taxation in the College of Business at San José State University, and a Fellow with the New America Foundation. KEVIN R. CONZELMANN
Kevin R. Conzelmann (A.B., Xavier University; J.D., Harvard Law School; LL.M., New York University, School of Law) is the Tax Counsel of Omnicom Group Inc. TABLE OF CONTENTS
Detailed AnalysisI. General IntroductionII. Amortization OverviewA. In GeneralB. When Amortization Applies1. Frameworka. Incurredb. Capitalization versus Expensingc. Applicable Amortization Provisiond. Placed in Service2. Amortization Trends3. Amortization and Tax ReformIII. Section 197 IntangiblesA. In General1. Historical Background to the Enactment of § 1972. Purpose3. Related Rules4. Overview to the Operation of § 1975. Intangible vs. TangibleB. Section 197 Intangibles Defined1. Relevance of How the Intangible was Obtaineda. Overviewb. Transactions Involving the Acquisition of Assets Constituting a Trade or Business or Substantial Portion Thereofc. Self-Created Intangibles2. Goodwill and Going Concern Value3. Workforce in Place4. Information Base5. Know-How, Patents, Copyrights, Package Designs, Software, Etc.a. In Generalb. Package Design Costsc. Software6. Customer-Based Intangibles7. Supplier-Based Intangibles8. Other Similar Items9. Licenses, Permits and Other Rights Granted by Governmental Units10. Covenants Not to Compete and Similar Arrangements11. Franchises, Trademarks, and Trade Names12. Contracts for the Use of § 197 Intangibles and Term Interests in § 197 IntangiblesC. Computing the § 197 Deduction1. Placed in Service2. Computation of the Amortization Deduction3. Contingent Amounts4. Intangibles Leased to Tax-Exempt EntitiesD. Disposition of § 197 Intangibles1. Denial of Loss on Certain Dispositions of § 197 Intangibles2. Character of Gain or Loss3. Nonrecognition TransactionsE. Special Rules for Applying § 1971. Certain Partnership Transactions2. Reinsurance Transactions3. Anti-Abuse RulesF. Effective Date Rules1. In General2. Election to Apply § 197 to Acquisitions After July 25, 1991a. Basic Rulesb. Mechanics of Electionc. Partnership Rulesd. Controlled and Consolidated Group Rulese. Foreign Corporation Rules3. Binding Written Contract Election4. The Anti-Churning Rulesa. General Ruleb. Exceptions to the Anti-Churning Rulesc. Partnership Rulesd. Anti-Abuse Rule5. The Impact of the 1993 RRA on Pre-§ 197 Audit Cases6. Effective Date of the RegulationsG. Tax Planning Under § 197: An ExampleIV. Intangibles Excluded From or Not Governed by § 197A. In GeneralB. Expenditures Required to be Capitalized Under Regs. § 1.263(a)-4 and -51. History2. Intangible Benefits Required to be Capitalizeda. Overviewb. Acquired Intangiblesc. Created Intangiblesd. Expenditures to Create or Enhance a Separate and Distinct Intangible Assete. Intangibles to be Identified in Future Guidancef. Facilitative Costs to Acquire or Create an Intangible Described Aboveg. Facilitative Costs to Acquire a Trade or Business, Change Capital Structure of a Business or Certain Other Transactions3. 12-Month RuleC. Amortization Possibilities Under § 1671. Regs. § 1.167(a)-3 Basics2. Judicial Interpretation of Regs. § 1.167(a)-3(a)3. Evolution of the Houston Chronicle Testa. The Mass Asset Ruleb. Definitional Goodwillc. Newark4. The Valuation Requirement5. The Limited Useful Life Requirement6. Straight-Line Method7. 15-Year Safe Harbor Amortization for Certain Intangible Assets8. Other Amortization Rules Under § 167D. Non-Amortizable IntangiblesE. Intangibles Specifically Excluded from § 197 and How Treated1. In General2. Interests in a Corporation, Partnership, Trust, or Estate3. Interests Under Financial Contracts4. Interests in Landa. In Generalb. Easementsc. Grazing Rightsd. Life Estates and Remainder Interests in Property5. Certain Computer Softwarea. Developed Computer Softwareb. Acquired Computer Software6. Separately Acquired Interests in Films, Sound Recordings, Videotapes, or Books7. Separately Acquired Patents and Copyrights8. Separately Acquired Governmental or Contract Rights9. Interests Under Leases of Tangible Propertya. In Generalb. Lease Cancellation Payments10. Interests Under Indebtedness11. Certain Transaction Costs12. Separately Acquired Mortgage Servicing Rights13. Separately Acquired Contracts for the Use of § 197 IntangiblesF. Intangibles Specifically Covered by Other IRC Provisions1. Special Rules for Costs Incurred by Authors, Photographers, and Artists2. Certain Musical Works and Copyrights3. Start-Up and Organizational Costs4. Research and Development (R& D) Expenditures5. Geological and Geophysical ExpendituresV. Related Rules and GuidanceA. Alternative Minimum Tax (AMT)B. Accounting Method ChangesC. Purchase Price Allocation Under § § 338 and 1060 Asset Acquisitions After March 15, 2001D. State Law
Working PapersTable of WorksheetsWorksheet 1 Capitalization and Amortization FrameworkWorksheet 2 Examples of Various Intangibles and their Tax TreatmentWorksheet 3 Outline of the § 1.197-2 RegulationsWorksheet 4 Omnibus Budget Reconciliation Act of 1993 Conference Report on Section 197 H.R. Rep. 213, 103d Cong., 1st Sess. 672â€"696 (1993)Worksheet 5 Congressional Research Service Report Amortization of Customer-Based Intangibles: An Economic PerspectiveWorksheet 6 Sample Covenant Not to CompeteWorksheet 7 IRS Settlement Initiative Program for Intangible Assets (released Feb. 9, 1994)Worksheet 8 Amortization of Specific Types of Intangible Property Under Pre-§ 197 LawBibliographyOFFICIALStatutes:Treasury Regulations:Legislative History:Treasury Rulings:Cases:UNOFFICIALPeriodicals:19651975197819791980198719881989199019911992199319941995199719982000200120022003200420052006