Treatment of Capitalized Costs of Intangible Assets
(Part II) — footnotes

¹⁷ TD 9107 (1/5/04).

¹⁸ This example is modeled after Regs. Sec. 1.263(a)-4(d)(2)(vi), Example 5.

¹⁹ See 35 USC Section 154.

²⁰ See the preamble to TD 9107, note 17 supra, at II. H.

²¹ Rev. Proc. 2000-50, 2000-2 CB 601; for a detailed discussion, see Witner and Krumwiede, “Purchasing, Leasing and Developing Software,” Part I, 34 The Tax Adviser (July 2003), and Part II, 34 The Tax Adviser (August 2003).

²² Rev. Proc. 69-21, 1969-2 CB 303.

²³ This is software readily available to the general public, subject to a nonexclusive license and not substantially modified.

²⁴ See the exhibit on in Part I of the April 2007 issue.

²⁵ See INDOPCO, Inc., 503 US 79 (1992), at 84.

²⁶ Preamble to TD 9107, note 17 supra, at III. H.

²⁷ Treasury issued Notice 2004-18, IRB 2004-11, 605, soliciting comments on the proper content of future guidance in this area.

²⁸ In general, the first $5,000 of start-up costs is deducted; any excess is amortized over 15 years.

²⁹ Rev. Rul. 99-23, 1999-1 CB 998.

³⁰ For a list of inherently facilitative costs, see Regs. Sec. 1.263(a)-5(e)(2).