Tax Policy: Issues and Policy Proposals Regarding Tax Treatment of Intangible Assets
GGD-91-88
Published: Aug 09, 1991. Publicly Released: Aug 09, 1991.
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Highlights
Pursuant to a congressional request, GAO provided information regarding the extent to which business taxpayers can deduct the price they pay for intangible assets, focusing on: (1) types of deductible intangible assets and their claimed values and useful lives; (2) industries claiming such deductions; and (3) various proposals for revising intangible asset tax rules.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider revising current tax law to allow amortization of purchased intangible assets, including goodwill, over specific statutory cost recovery periods. | Congress considered and passed legislation to allow the amortization of most purchased intangible assets over a specific cost recovery period. The legislation was vetoed by the President. Congress did not override the veto. |
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Topics
Accounting proceduresAmortizationCorporationsFair market valueIntangible assetsProposed legislationTax administrationTax creditTax lawTax shelters