Deanna Nebert, Acquisition Costs: Big Bucks, Big Taxes, 26 Gonz. L. Rev 183 (1990).
This comment addresses how particular acquisition costs incurred in corporate take-overs should be treated for tax purposes. The courts have held that acquisition costs incurred by acquiring corporations are not currently deductible, but must be capitalized. The great puzzle of how to treat those capitalized costs remains unsolved. Only one thing is certain: as Gilbert Bloom of Peat Marwick Mitchell & Company told Wall Street Journal reporters,“there will be more litigation on this issue…. There are a lot of bucks at stake.”
Before presenting the two positions that have been taken in this area, it may be beneficial to note the types of costs and the particular acquisition methods covered by this comment, and the general rationale and treatment of costs under the Internal Revenue Code of 1986. . .
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