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When buying certain small businesses goodwill is the largest intangible asset.

For an example company, Purchase Price: 1,000,000 Tangible assets: 200,000 Goodwill: 800,000

If the company's value stays the same or grows can the acquirer amoritize goodwill on their taxes as a deduction?

Or can they only do that when the business goes down in value when profits go down, and the goodwill drops to 650,000. And then can only 150,000 be amortized?

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    Tax questions require a country tag. – mhoran_psprep Mar 30 at 16:38
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It's important not to confuse the IRS rules for goodwill amortization with the GAAP rules for goodwill impairment and amortization. See this article.

For small businesses, the IRS rules are the ones that matter, because you can reduce your taxes owed.

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