- 30 -
permitted merely because, in the unsupported opinion of
the taxpayer, the intangible asset has a limited useful
life. No deduction for depreciation is allowable with
respect to goodwill. * * *
As we explained in Fed. Home Loan Mortgage Corp. v.
Commissioner, 121 T.C. 254, 258-259 (2003):
For an intangible asset to be amortizable under section
167(a), the taxpayer must prove with reasonable
accuracy that the asset is used in the trade or
business or held for the production of income and has a
value that wastes over an ascertainable period of time.
Newark Morning Ledger Co. v. United States, 507 U.S.
546, 566 (1993); FMR Corp. v. Commissioner, 110 T.C.
402, 430 (1998). The taxpayer must prove that the
intangible asset has a limited useful life, the
duration of which can be ascertained with reasonable
accuracy, and the asset has an ascertainable value
separate and distinct from goodwill and going-concern
value. S. Bancorporation, Inc. v. Commissioner, 847
F.2d 131, 136-137 (4th Cir. 1988), affg. T.C. Memo.
1986-601. * * *
Respondent admits on brief that customer accounts are one
type of intangible asset for which amortization may be available
under section 167. Respondent, however, focusing on the seminal
holding in Newark Morning Ledger Co. v. United States, 507 U.S.
546, 566 (1993) (Newark), argues that customer accounts of
brokers differ from newspaper subscriptions in ways which would
make the Newark holding inapplicable to the facts of these
cases.14 If the acquired customer accounts are found to be
amortizable, respondent argues in the alternative that petitioner
14 In Newark Morning Ledger Co. v. United States, 507 U.S.
546, 566 (1993) (Newark), the Supreme Court held that an acquired
list of newspaper subscribers had a separate value and a limited
useful life and was therefore amortizable.
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NextLast modified: May 25, 2011