---
title: "What Is Intangible asset? Domain Glossary | Grit Brokerage"
description: "An intangible asset is property with value that you cannot touch, such as a patent, goodwill or a domain name. Amortization spreads its cost over..."
url: https://gritbrokerage.preview.multisites.ai/glossary/intangible-asset
publisher: Grit Brokerage
contact: https://gritbrokerage.preview.multisites.ai/contact
offer: https://gritbrokerage.preview.multisites.ai/inquiry
---

Valuation and pricing

# Intangible asset

An intangible asset is property with value that you cannot touch, such as a patent, goodwill or a domain name. Amortization spreads its cost over several years for tax purposes.

## Why it matters

A business that buys a domain may need to treat the cost as an asset instead of a one-time expense. The IRS says section 197 intangibles are generally amortized over 15 years. Whether a particular domain falls in that group depends on the facts. Sellers may owe tax on gains. Treatment can differ for investors, traders and businesses. Ask a tax professional before the deal. A common mistake is assuming the full price is deductible in year one.

Source: [irs.gov](https://www.irs.gov/businesses/small-businesses-self-employed/intangibles)

[Read nextHow to Sell a Domain Name: A Broker's Step-by-Step Guide](https://gritbrokerage.preview.multisites.ai/guides/how-to-sell-a-domain-name)

## Buying or selling a domain?

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