Rules for intangible assets Flashcards
1
Q
Rules for intangible assets:
A
1.263 (a) (4)- capitalize value of asset
2
Q
3 rules of intangible assets
A
- acquisition costs
- amount paid to create intangibles
3 transaction costs to facilitate
3
Q
acquisition costs
A
costs to acquire in purchase/similar transaction. must capitalize.
4
Q
acquistion costs to capitalize include
A
goodwill, patents, going coern (buying existing not starting new), cov not to compete
5
Q
amount paid to create intangibles
A
create includes prepaid expenses.
6
Q
for prepaid expenses
A
capitalzie and amortize out for te covered years
7
Q
general rule for prepaid expendiruee
A
capitalize
8
Q
exception for prepaid expenses
A
12 month rule
9
Q
advertising costs can or cant be deducted?
A
can deduct
10
Q
transaction costs:
A
lawyers fee to negotiate deals
