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Amortization

Amortization refers to the write-off of costs or Basis in equal amounts over a period of months or years. For example, you write off Start-up Expenses in excess of $5,000 over 180 months.1

 

Think of amortization as Straight-Line Depreciation (see Depreciation) for Intangible Property.

 

You can find detailed information on amortization in chapter 8 of IRS Publication 535 , Business Expenses.

 


 

1           IRC Section 195(b)(1).