Amortization of intangibles,
Definition of Amortization of intangibles:
Intangible assets, such as patents and trademarks, are amortized into an expense account. Tangible assets are instead written off through depreciation.
The practice of amortizing non-tangible assets in order to deduct their costs for tax purposes. The types of non-tangible assets that qualify for this amortization are determined by the Internal Revenue Code, and all intangible assets are amortized over a 15-year period.
Amortization of intangibles is the process of expensing the cost of an intangible asset over the projected life of the asset for tax or accounting purposes. The amortization process for corporate accounting purposes may differ from the amount of amortization posted for tax purposes.
How to use Amortization of intangibles in a sentence?
- Amortization applies to intangible (non-physical) assets, while depreciation applies to tangible (physical) assets.
- Intangible assets may include patents, goodwill, trademarks, and human capital.
- Amortization of intangible assets is a process by which the cost of such an asset is incrementally expensed or written off over time.
Meaning of Amortization of intangibles & Amortization of intangibles Definition