Dana Corp. v. United States

ORDER

MILLER, Judge.

This case comes before the court after argument on the parties’ cross-motions for partial summary judgment. The issues are 1) whether plaintiff may deduct as an ordinary and necessary business expense a retainer fee paid to a law firm in 1984 and applied towards services rendered in connection with a subsequently occurring capital acquisition and 2) whether plaintiffs subsidiary, a cash-method taxpayer, may deduct prepayments of interest in the year paid.

FACTS

The parties provided a Joint Stipulation from which the following facts are drawn. During tax years 1984 and 1985,…