Fort Howard Corp. v. Commissioner
United States Tax Court
In Fort Howard Corp. v. Commissioner, 103 T.C. 345 (1994), we held that sec. 162(k), I.R.C., precluded petitioner from deducting or amortizing the costs and fees, other than interest, that petitioner paid in 1988 to borrow funds used in the leveraged buyout of its stock. Sec. 1704(p) of the Small Business Job Protection Act of 1996, Pub.
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In Fort Howard Corp. v. Commissioner, 103 T.C. 345 (1994), we held that sec. 162(k), I.R.C., precluded petitioner from deducting or amortizing the costs and fees, other than interest, that petitioner paid in 1988 to borrow funds used in the leveraged buyout of its stock. Sec. 1704(p) of the Small Business Job Protection Act of 1996, Pub. L. 104-188, 110 Stat. 1755, 1868, which was signed by the President on Aug. 20, 1996, and applies retroactively to 1988, provides that the expense disallowance rule of sec. 162(k) does not apply to any "deduction for amounts which are properly allocable to…
1Opinion of the Court
SUPPLEMENTAL OPINION
Ruwe, Judge:
On August 24, 1994, we issued an opinion that resolved some, but not all, of the issues in this case. Fort Howard Corp. & Subs. v. Commissioner, 103 T.C. 345 (1994). The parties have now settled the remaining issues.
One of the issues resolved in our prior opinion was whether section 162(k)1 precluded petitioner from deducting or amortizing the costs and fees, other than interest, that petitioner paid in 1988 to borrow funds used in the leveraged buyout (lbo) of its stock. We held that such costs and fees were paid or incurred “in connection with” a redemption…
2Cases cited1 opinion
- Fort Howard Corp. v. CommissionerUnited States Tax Court · 1994
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