Sales Percentage Trademark Royalty Payments are Deductible

The Second Circuit Court of Appeals, in an opinion by Judge Calebresi, reverses the Tax Court’s decision, holding instead that trademark royalty payments which are calculated as a percentage of sales and incurred on upon the sale of inventory are currently deductible.

Read the opinion here:
Robinson Knife Mfg. v. Commissioner, Docket 09-1496-ag (2d Cir. March 19, 2010)

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