Fort Howard Corp. v. Commissioner
United States Tax Court
In 1988, P was the subject of a leveraged buyout (LBO) that was treated as a redemption for Federal tax purposes. P incurred numerous costs in obtaining the debt financing used to complete the LBO.
Read the full summary
In 1988, P was the subject of a leveraged buyout (LBO) that was treated as a redemption for Federal tax purposes. P incurred numerous costs in obtaining the debt financing used to complete the LBO. P capitalized these costs and amortized them over the life of the debt, deducting in full the costs attributable to debt retired in 1988. In addition, P now contends that a portion of an organizer fee constituted "additional interest" fully deductible in 1988. Held:Sec. 162(k), I.R.C., prohibits corporate deductions for amounts "paid or incurred by a corporation in connection with the redemption of…
1Opinion of the Court
Fort Howard Corporation and Subsidiaries, Petitioner v. Commissioner of Internal Revenue, Respondent
Fort Howard Corp. v. Commissioner
Docket No. 6362-92
United States Tax Court
103 T.C. 345; 1994 U.S. Tax Ct. LEXIS 63; 103 T.C. No. 18;
August 24, 1994, Filed
An appropriate order will be issued.
In 1988, P was the subject of a leveraged buyout (LBO) that was treated as a redemption for Federal tax purposes. P incurred numerous costs in obtaining the debt financing used to complete the LBO. P capitalized these costs and amortized them over the life of the debt, deducting in full the costs…
Also in this document: Dissent.
2Cases cited66 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Indopco, Inc. v. CommissionerSupreme Court of the United States · 1992
- Crane v. CommissionerSupreme Court of the United States · 1947
61 more not listed; retrieve them via the Exa API.