Goodwill:
- Goodwill is an intangible asset that represents the value of a business beyond its tangible assets (such as equipment, inventory, and property).
- Goodwill typically arises when a business is purchased for more than the fair market value of its net assets.
- While goodwill is an important aspect of business valuation, it is not considered a start-up expense for tax purposes.
- Instead, goodwill is typically amortized over a longer period (usually 15 years) as part of the business’s overall depreciation and amortization schedule
Same for Franchise Fee
Recoverable start-up costs for purchasing an active trade or business include only investigative costs incurred during a general search for or preliminary investigation of the business. These are costs that help in deciding whether to purchase a business
