INDOPCO, Inc. v. Commissioner
United States Supreme Court
503 U.S. 79 (1992)
Relevant factsFree
INDOPCO (plaintiff), formerly National Starch, incurred over $2.8 million in investment banker, legal, and miscellaneous fees facilitating its friendly acquisition by Unilever, and sought to deduct these as ordinary business expenses on its federal tax return; the Commissioner (defendant) determined the expenses were non-deductible capital expenditures, the Tax Court and Court of Appeals agreed, and the Supreme Court granted certiorari.
IssueFree
Whether corporate expenses incurred to change a corporation's structure in order to obtain future benefits are deductible as ordinary and necessary business expenses.