Schedule C - Amortization

Amortization is similar to the straight line method of depreciation in that an annual deduction is allowed to recover certain costs over a fixed time period. You can amortize such items as the costs of starting a business, goodwill, and certain other intangibles. See the instructions for Part VI.

For amortization that begins in the tax year, you must complete and attach Form 4562.

You can elect to amortize such costs as: 

• The cost of pollution-control facilities;

• Geological and geophysical expenditures (section 167(h));

• Amounts paid for research and experimentation;

• Qualified revitalization expenditures;

• Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names;

• Certain expenses paid or incurred to create or acquire a musical composition or its copyright;

• Goodwill and certain other intangibles.

In general, you cannot amortize real property construction period interest and taxes. Special rules apply for allocating interest to real or personal property produced in your trade or business.

For more information see IRS Instructions for Schedule C.