amortize


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amortize

[′am·ər‚tīz]
(industrial engineering)
To reduce gradually an obligation, such as a mortgage, by periodically paying a part of the principal as well as the interest.
References in periodicals archive ?
Thus the decision whether to amortize an asset in the current period has a direct effect on the company's bottom line.
To amortize debt issuance costs under the new regulations, the taxpayer must calculate an adjusted yield that takes into account both interest and debt issuance costs.
It further said Newark had presented a totally different situation--the ability to amortize the future profits from at-will subscribers.
The bondholder does not have to amortize the market discount that arises from all tax-exempt bonds purchased prior to May 1, 1993.
Accordingly, the taxpayers wanted to claim the standard deduction for Year 1 and amortize the points over the loan's life beginning in Year 2.
05% provide for monthly payments of interest only for the first 10 years, after which the monthly payment on each mortgage loan will be increased to an amount sufficient to fully amortize the outstanding principal balance over its remaining term.
174(b) allows taxpayers to capitalize and amortize research and experimental expenditures.
197 affect partners' ability to amortize pre-1993 and self-created goodwill.
12, 1998, the IRS published proposed regulations to provide guidance on the election to amortize start-up expenses under Sec.
167 permits taxpayers to depreciate or amortize the cost of property used in a trade or business or held for the production of income, if the property has a limited useful life and it may be determined with reasonable accuracy.
As a consequence of this clarification, the Service can be expected to abandon its current litigating position, thereby allowing corporations to amortize such loan costs without the threat of challenge.