### Question
How does the law define supplier-based intangible?


### Answer
Under *26 U.S.C. § 197*, **supplier-based intangible** is defined as:

> any value resulting from future acquisitions of goods or services pursuant to relationships (contractual or otherwise) in the ordinary course of business with suppliers of goods or services to be used or sold by the taxpayer

#### Citation:
  - *26 U.S.C. § 197*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

