Medco Products Co. v. Commissioner
United States Tax Court
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.
1Opinion of the Court
OPINION
Tietjens, Judge:
The Commissioner determined the following deficiencies in petitioner’s income taxes:
TYM Nov. 80— Deficiency .
1967 _$4,328.04
1968 _ 6,076.71
The sole question for decision is whether legal expenses incurred by petitioner in a trademark infringement lawsuit are deductible as ordinary and necessary expenses under section 162.1
This case was fully stipulated pursuant to Eule 122, Tax Court Eules of Practice and Procedure. The facts which we deem necessary for decision will be referred to below.
Petitioner was incorporated under the laws of Oklahoma on April 1, 1955, and, at…
2Cases cited18 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Woodward v. CommissionerSupreme Court of the United States · 1970
- United States v. Hilton Hotels Corp.Supreme Court of the United States · 1970
- Boagni v. CommissionerUnited States Tax Court · 1973
13 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Hardy v. CommissionerUnited States Tax Court · 1989
- Rodeway Inns of America v. CommissionerUnited States Tax Court · 1974
- Hardy v. CommissionerUnited States Tax Court · 1989
- Medco Products Co. v. CommissionerUnited States Tax Court · 1974
- Rodeway Inns of America v. CommissionerUnited States Tax Court · 1974
2 more not listed; retrieve them via the Exa API.