purchase territory

[theresa d]

have a client who purchased a sales territory. any idea how this is amortized? i'm thinking it would be a 197 intangible and amortized over 15 years, similar to purchasing a franchise? do you agree or have any additional info. can't find anything on this type of purchase. thanks for any help.

[Matt Sova]

Sounds like it

That sounds like Sec 197 property. See TTB page 9-18 - Customer Based intangibles.

[theresa d]

thanks matt

for the reinforcement. my book was missing that page but i had 2 pg 9-19\9-20. called taxbook and they were great. they faxed me over the page within 5 minutes. i was impressed. agree customer based intangibles seems to fit the bill! thanks