Level 15
03-07-2025
09:12 AM
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A bread route is considered as a Section 197 intangible by the IRS. The cost has to be capitalized and amortized over 15 years. I believe section 197 intangible property is treated as property which is subject to the allowance for depreciation and constitutes property subject to depreciation recapture under Section 1245. You should research this yourself, as I have never done this type of sale.