When you are dealing with assets especially intangible assets amortization means differently.\u00a0<\/p>

Here amortization is the periodic reduction in value over a period of time that is similar to the depreciation of fixed assets and depletion, of natural resources.<\/p>

When machinery or land or buildings (tangible assets) are purchased and used their value decreases after a certain period of time for example if a new forklift is bought for $30,000 it will not be worth the same amount after five or ten years later. Yet the assessment is accounted for in the company\u2019s balance sheet.<\/p>

When an asset\u2019s initial cost is divided by its useful life or the time it is useful before replacing or repairing it is depreciation like the forklift\u2019s is useful for ten years then its value will depreciate $3000 every year<\/p>

In the case of intangible assets amortization refers to the act of depreciation.\u00a0<\/p>

Though it is more difficult to calculate the true cost and value of things because it is never fixed. Guidance is provided by accounting and tax rules on how to calculate the depreciation of the assets over time.<\/p>

For tax planning the amortization of intangibles is useful. for certain expenses like geological and geophysical expenses, the taxpayers are allowed to take a deduction experienced in oil and natural gas exploration, atmospheric pollution control facilities, bond premiums, R&D, lease acquisition, forestation, and reforestation.\u00a0<\/p>

Also deductions in intangibles, such as goodwill, patents, copyrights, and trademarks by the Internal Revenue Service<\/u><\/a> (IRS).<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t