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United States, 740 F.2d 572 (7th Cir. 1984), [1] is a case decided by the United States Court of Appeals for the Seventh Circuit related to the amortization of intangible property. [ 2 ] Conceptually, amortization is a mechanism that allows taxpayers to recover the cost of property over the life of an asset when they are precluded from taking ...
In tax law, amortization refers to the cost recovery system for intangible property.Although the theory behind cost recovery deductions of amortization is to deduct from basis in a systematic manner over an asset's estimated useful economic life so as to reflect its consumption, expiration, obsolescence or other decline in value as a result of use or the passage of time, many times a perfect ...
When the purchaser of an intangible asset is allowed to amortize the price of the asset as an expense for tax purposes, the value of the asset is enhanced by this tax amortization benefit. [1] Specifically, the fair market value of the asset is increased by the present value of the future tax savings derived from the tax amortization of the ...
In accounting, amortization is a method of obtaining the expenses incurred by an intangible asset arising from a decline in value as a result of use or the passage of time. Amortization is the acquisition cost minus the residual value of an asset, calculated in a systematic manner over an asset's useful economic life.
Intangible assets are typically expensed according to their respective life expectancy. [2] [7] Intangible assets have either an identifiable or an indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or legal life, [10] whichever is shorter. Examples of intangible ...
Amortization describes the process of paying off a loan, such as a mortgage, in installment payments over a period of time. Part of each payment goes toward the principal, or the amount borrowed ...
An amortizing loan should be contrasted with a bullet loan, where a large portion of the loan will be paid at the final maturity date instead of being paid down gradually over the loan's life. An accumulated amortization loan represents the amount of amortization expense that has been claimed since the acquisition of the asset.
Amortization or amortisation may refer to: The process by which loan principal decreases over the life of an amortizing loan Amortization (accounting) , the expensing of acquisition cost minus the residual value of intangible assets in a systematic manner, or the completion of such a process