American Stores Co. v. Commissioner
United States Tax Court
P purchased the stock of LS. Prior to purchasing LS, P had negotiated with the Federal Trade Commission to satisfy the antitrust concerns about the purchase. Shortly after P's purchase of LS, and 1 day after the FTC entered its final consent order, the State of California filed an antitrust suit in Federal District Court objecting to P's purchase of LS. The State asked for various remedies including divestiture.
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P purchased the stock of LS. Prior to purchasing LS, P had negotiated with the Federal Trade Commission to satisfy the antitrust concerns about the purchase. Shortly after P's purchase of LS, and 1 day after the FTC entered its final consent order, the State of California filed an antitrust suit in Federal District Court objecting to P's purchase of LS. The State asked for various remedies including divestiture. The District Court issued a temporary injunction prohibiting P from integrating the business operations of LS and P. The District Court's opinion was the subject of an appeal and was…
1Opinion of the Court
OPINION
Ruwe, Judge:
Respondent determined deficiencies of $7,963,850 and $1,773,964 in petitioner’s Federal income tax for its taxable years ending January 28, 1989, and February 3, 1990, respectively (hereinafter referred to as the 1989 and 1990 tax years). After concessions, the only issue for decision is whether petitioner may deduct or must capitalize legal fees and costs (legal fees) incurred in defending an antitrust suit brought by the State of California subsequent to petitioner’s acquisition of Lucky Stores, Inc. This case is before the Court fully stipulated. See Rule 122. The…
2Cases cited24 opinions
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