On a 2021 tax return, how, if at all, would you recover the cost you pay for a noncompete agreement (or “covenant not to compete”) in the context of your pur-chase of all of the assets of a going-concern accounting practice?     (a)  Straightline amortization over the covenant’s term.      (b)  Straightline amortization over 15 years (180 months).   (c)  Straightline amortization over the shorter of (a) or (b).   (d)  Straightline amortization over the longer of (a) or (b).   (e)  Section 179 “expensing.”   (f)  None of the above statements is true

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
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Chapter18: Accounting Periods And Methods
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On a 2021 tax return, how, if at all, would you recover the cost you pay for a noncompete agreement (or “covenant not to compete”) in the context of your pur-chase of all of the assets of a going-concern accounting practice?  

 

(a)  Straightline amortization over the covenant’s term.   

 

(b)  Straightline amortization over 15 years (180 months).

 

(c)  Straightline amortization over the shorter of (a) or (b).

 

(d)  Straightline amortization over the longer of (a) or (b).

 

(e)  Section 179 “expensing.”

 

(f)  None of the above statements is true.

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