Buddy Schoellkopf Products, Inc. v. Commissioner
United States Tax Court
Petitioner is a Texas corporation engaged in the development, manufacture, and sale of various products for the outdoorsman. During the 1968 fiscal year, petitioner paid legal fees in connection with the acquisition of assets from Brunswick Corp. These assets included inventory, equipment, and trade names. Held, the portion of legal fees incurred by petitioner which is attributable to trade names must be capitalized. The remainder of these fees are currently deductible.
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Petitioner is a Texas corporation engaged in the development, manufacture, and sale of various products for the outdoorsman. During the 1968 fiscal year, petitioner paid legal fees in connection with the acquisition of assets from Brunswick Corp. These assets included inventory, equipment, and trade names. Held, the portion of legal fees incurred by petitioner which is attributable to trade names must be capitalized. The remainder of these fees are currently deductible. In order to finance the acquisition from Brunswick, petitioner secured a loan from Prudential. Petitioner had a loan with…
1Opinion of the Court
OPINION
The first issue is whether the Commissioner erred in disallowing $4,000 of travel expenses claimed by petitioner. In order to successfully deduct its travel expenses under Code section 162,1 petitioner must substantiate these expenditures pursuant to the rules set forth in section 274(d). Section 274(d) provides that no deduction shall be taken for travel, entertainment, or gift expenses unless by either “adequate records” or “sufficient evidence corroborating his own statement” the taxpayer substantiates the essential elements relating to the nature and business character of the…
2Cases cited22 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Sanford v. CommissionerUnited States Tax Court · 1968
- William F. Sanford v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1969
17 more not listed; retrieve them via the Exa API.
3Cited by54 opinions
- Borchers v. CommissionerUnited States Tax Court · 1990
- Hynes v. CommissionerUnited States Tax Court · 1980
- Standard Oil Co. v. CommissionerUnited States Tax Court · 1981
- Solitron Devices, Inc. v. CommissionerUnited States Tax Court · 1983
- Guill v. CommissionerUnited States Tax Court · 1999
49 more not listed; retrieve them via the Exa API.