Medco Products Co. v. Commissioner

Medco Products Co., Inc., Petitioner v. Commissioner of Internal Revenue, Respondent

Medco Products Co. v. Commissioner

Docket No. 8037-72

United States Tax Court

62 T.C. 509; 1974 U.S. Tax Ct. LEXIS 74; 62 T.C. No. 56;

July 15, 1974, Filed

Decision will be entered for the respondent.

Held, legal expenses incurred by petitioner in trademark infringement litigation which resulted in an injunction against another corporation and an award of $ 1,000 compensation for all damages and costs were not deductible as ordinary and necessary expenses under sec. 162, I.R.C. 1954, but were capital expenditures.

Low…