amortization of intangibles

Hi guys,
with a friend of mine we are in the process of starting up a business. We need to develop a concept and, it is my understanding that if the design is developed internally it is classified as R&D and hence
expensed. On the other hand if we buy the design/concept, we can capitalize it and therefore smooth income. It is my understanding correct?
thank you very muc,
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
Add image file
Upload is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.