What useful life should be considered when estimating the TAB factor of an intangible asset?
Amortisation of intangible assets is not always tax deductible. Its deductibility depends on the corporate income tax legislation of single countries. Most countries define maximum amortisation rates or minimum number of years in which the amortisation of intangible assets can be deducted, if at all. This page displays the legal tax amortisation periods of the main types of intangible assets.
|Country||Patents||Technology||Trademark||Customer relationships||Goodwill||Last update|
|United States of America||15||N/A||15||15||15||Apr 2016|
Further Detail and Source Legislation
The tax amortisation periods of intangible assets in the US are defined IRC SECTION 704(c) AND IRC SECTION 197 of Chapter 3 of the Audit Techniques Guide published by the Internal Revenue Service of the United States.
It establishes a mandatory 15-year recovery period for assets such as goodwill, trademarks, franchises, licenses granted by governmental agencies, and customer-based intangibles. Other assets, such as patents and copyrights, are amortizable under IRC section 197 if they are purchased as part of a trade or business.