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Section 197 Intangibles 15-Year Amortization Calculator

What is this money worth, or what does it cost, over time?

Monthly and yearly amortization of goodwill and other section 197 intangibles over 180 months from the month acquired.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Amortization for the chosen year
$60,000
Straight line over 180 months
Months in that year
12.00
Monthly amortization
$5,000
Basis / 180
Drawn to one scale
Amortization for the chosen year$60,000
Monthly amortization$5,000
Accumulated amortization at year end$105,000
Remaining basis at year end$795,000
All results
MeasureResult
Amortization for the chosen year$60,000
Months in that year12.00
Monthly amortization
Basis / 180
$5,000
Accumulated amortization at year end$105,000
Remaining basis at year end$795,000
How this was worked out
Work shownrecomputed as you type
Monthly amortization = adjusted basis / 180
Months in year 0 = 13 - month acquired (calendar year)
Full years have 12 months until 180 months are used

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Monthly amortization = adjusted basis / 180
  • Months in year 0 = 13 - month acquired (calendar year)
  • Full years have 12 months until 180 months are used

How it works

Section 197 treats goodwill, going concern value, workforce in place, customer and supplier relationships, licenses, franchises, trademarks and certain covenants not to compete as intangibles amortized ratably over 15 years beginning with the month acquired, whether or not they have a useful life.

If you dispose of one intangible acquired in a transaction but keep others, no loss is recognized and the basis of the kept intangibles is adjusted. Intangibles you create yourself are outside section 197 under section 197(c), with exceptions for some categories. Anti-churning rules deny amortization for some pre-1993 intangibles. This tool assumes a calendar tax year.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is the useful life ever shorter than 15 years?

No. Section 197 sets 15 years for covered intangibles regardless of their actual life.

Which intangibles are covered?

Section 197(d) lists goodwill, going concern value, workforce in place, customer and supplier based intangibles, licenses, certain covenants not to compete, franchises and trademarks.

Does it start in the month of purchase?

Yes, with a full month counted for the month acquired.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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