The Independent Insurance Agents & Brokers of America (the Big “I”) announced its support for a bill introduced today in the House that would allow purchasers of eligible small businesses to write off as much as $5 million of acquired intangible assets over the course of a five-year period.
The bipartisan bill, the “Tax Fairness for Small Business Act,” introduced by Chief Deputy Majority Whip Eric Cantor (R-Va.) and Rep. Earl Pomeroy (D-N.Dak.), also would allow purchasers to more accurately amortize intangible assets acquired through the purchase of small businesses, and provide better liquidity to Main Street businesses.
“The Big ‘I’ has been a longtime proponent of common-sense tax reform on intangible assets acquired through the purchase of one small business by another,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We and our members are very pleased that Chief Deputy Majority Whip Cantor and Congressman Pomeroy are moving forward to provide tax relief to Main Street America’s businessmen and businesswomen, and we thank them for their work on this issue.”
Current law requires intangible assets to be depreciated over 15 years, even though these specific types of assets, such as customer lists, have much shorter shelf lives. According to IIABA, intangible assets often have shelf lives closer to five years and has consistently supported shortening the depreciation schedule.
Source: Independent Insurance Agents & Brokers of America
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