Amortization (tax Law)

Amortization (tax Law)

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 match of income and deductions does not occur for policy reasons.

Read more about Amortization (tax Law):  Depreciation, In The United States of America

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Amortization (tax Law) - In The United States of America - Start-up Expenditure
... For amortizationas it relates to start-up expenses for a new business or activity ... current deductions for most start-up expenses,section 195 allows a taxpayer prorate start-up expenditures over a 180-month period ...