Markham & Brown, Inc. v. United States

The appellant, Markham & Brown, Inc. was of the opinion that its repurchase of stock was deductible as an ordinary and necessary business expense under 26 U.S.C. § 162 and that its unilateral allocation of amounts for covenants not to compete could be amortized. The Internal Revenue Service thought otherwise and denied Markham & Brown’s claims for refunds. The district court affirmed. Contending that the district court had erred both on the facts and on the law, Markham & Brown sought relief in this court. Markham & Brown’s briefs and arguments are capital, but so were its expenditures, thus…