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).