The IRS lays out specific guidelines for how taxpayers should treat intangible assets, such as trademarks, patents, and more.

Different rules apply for self-created intangible assets (e.g. goodwill created through advertising) than for intangibles that are acquired. Self-created intangible assets are either deductible or their capitalized costs are amortized, provided they are of use to the business for only a limited period of time that can be reasonably estimated. Examples are patents and copyrights. If the self-created intangible asset’s useful life is not limited or determinable, its cost is not amortizable.