By Jean Murray. US Business Law / Taxes Expert
Jean Murray has the education and experience to help you become an expert in your small business, and to provide you with information about business legal and tax issues. With an MBA and a PhD in entrepreneurship, she brings almost 30 years of experience and knowledge to these important business subjects.
You can also read more about Jean's current and past work on her About.me page.
DISCLAIMER: I am not a CPA or attorney, and nothing on this site in articles, emails, blog posts, or other communications is intended to be tax or legal advice. The purpose of this site is to provide general information to readers. No claim is made regarding the accuracy
or legal status of information on this site. Federal, state, and local laws and regulations change, and every business situation is unique. Readers should not take action on any tax or legal matter without reviewing options with a tax advisor or attorney.
Amortization has several meanings. In relation to loans, amortization is the process of paying down the loan by making payments which include both principal and interest.
Amortization is also related to the concept of depreciation. While depreciation expenses the cost of a tangible asset over its useful life, amortization deals with expensing an intangible asset or liability, like a mortgage.
An amortization schedule is often used to show the amount of interest and principal for a loan with each payment.