Editing Intangible asset (section)

=== Taxation ===

For personal income tax purposes, some costs with respect to intangible assets must be capitalized rather than treated as [[Tax deduction|deductible expenses]]. Treasury regulations in the USA generally require capitalization of costs associated with acquiring, creating, or enhancing intangible assets.<ref>Treas. Reg. § 1.263(a)-4.</ref> For example, an amount paid to obtain a [[trademark]] must be capitalized. Certain amounts paid to facilitate these transactions are also capitalized. Some types of intangible assets are categorized based on whether the asset is acquired from another party or created by the taxpayer. The regulations contain many provisions intended to make it easier to determine when capitalization is required.<ref>Donaldson, Samuel A. Federal Income Taxation Of Individuals: Cases, Problems and Materials (2nd ed.). St. Paul: Thomson West, 2007. p. 200.</ref>

Given the growing importance of intangible assets as a source of economic growth and tax revenue,<ref name="federalreserve.gov"/> and because their non-physical nature makes it easier for taxpayers to engage in tax strategies such as [[income-shifting]] or [[transfer pricing]],<ref>"Action Plan on Base Erosion and Profit Shifting." (2013) Organisation for Economic Co-operation and Development (OECD). http://www.oecd.org/sti/inno/46349020.pdf</ref> tax authorities and international organizations have been designing ways to link intangible assets to the place where they were created, hence defining nexus. Intangibles for corporations are [[Amortization (tax law)|amortized]] over a 15-year period, equivalent to 180 months.

Definition of "intangibles" differs from standard accounting, in some US state governments. These governments may refer to stocks and bonds as "intangibles".<ref>{{Cite web |url=http://www.docstoc.com/docs/28185447/The-Florida-Intangible-Tax |title=Florida Intangible Tax |access-date=2010-10-02 |archive-date=2015-05-16 |archive-url=https://web.archive.org/web/20150516034049/http://www.docstoc.com/docs/28185447/The-Florida-Intangible-Tax |url-status=dead }}</ref>