Is goodwill taxable

Goodwill itself is not directly taxable; rather, it is considered an intangible asset that may be subject to taxation upon sale or transfer. When a business is sold, the gain realized on the sale of goodwill may be subject to capital gains tax. Additionally, businesses can amortize the cost of goodwill over a period of 15 years for tax purposes. Therefore, while goodwill isn't taxed as income, transactions involving it can have tax implications.