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)