Tax Fairness for Small Business Act of 2006

H.R. 4960, the Tax Fairness for Small Business Act of 2006, proposed changing how small business owners handle taxes when purchasing another company’s intangible assets, such as its reputation or brand name (known as "goodwill"). Under this bill, qualifying buyers could deduct the cost of these assets from their taxes over a five-year period instead of the standard fifteen-year period. This change was intended to provide faster tax relief and improve cash flow for entrepreneurs acquiring businesses with average annual receipts of $5 million or less.