National Starch & Chemical Corp. v. Commissioner
United States Tax Court
P, the acquired firm in a friendly takeover, incurred legal, investment banking, and other fees incident to the takeover. Held, the fees are capital expenditures rather than current expenses and, thus, are not deductible under sec. 162(a).
1Opinion of the Court
CLAPP, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for the taxable year ended August 15, 1978, in the amount of $1,068,281. The only issue for our decision is whether petitioner, the acquired corporation in a friendly takeover, may deduct under section 162(a)1 the expenditures it incurred incident to the takeover.
FINDINGS OF FACT
Most of the facts were stipulated and are so found. The stipulation of facts and attached exhibits are incorporated herein by this reference. At the time the petition was filed, the principal office of National Starch & Chemical Corp.…
2Cases cited34 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Unocal Corp. v. Mesa Petroleum Co.Supreme Court of Delaware · 1985
- Commissioner v. Lincoln Savings & Loan Ass'nSupreme Court of the United States · 1971
- McDonald v. CommissionerSupreme Court of the United States · 1944
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- National Starch and Chemical Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1990
- A.E. Staley Mfg. Co. v. CommissionerUnited States Tax Court · 1995
- Norwest Corp. v. CommissionerUnited States Tax Court · 1999
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