Clarification.

• Position: Correction notice

In the May 2007 article by Larry Witner, "Treatment of Capitalized Costs of Intangible Assets (Part II)," Example 13 on p. 288 states that capitalized transaction costs in an asset acquisition are treated under Sec. 1060 as category 6 transaction costs, not eligible for amortization. However, Regs. Sec. 1.263(a)-5(g)(2)(i) states that such costs are added to the basis of the acquired (1)...