Items Not Section 197 Intangibles

The following items are not considered section 197 intangibles:

  • Copyrights and patents, interests in films, sound recordings, video tapes, books, or other similar property
    • However, if any of these intangibles are acquired as part of a purchase of a business, then they are classified as section 197 intangibles and you may amortize their cost over 15 years.
  • Interests in:
    • a corporation, partnership, trust, or estate
    • Land
    • Certain financial contracts, or under existing leases of tangible property, or under existing indebtedness
  • Sports franchises
  • Certain corporate transaction costs
  • Certain computer software

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