Mergers and Acquisitions

You are here: Home : Topics A-Z : Mergers and Acquisitions

Spreadsheets and Banking Fee Deductions

Determining whether "success-based" banking fees are deductible in M&A transactions takes some patience. But in a hypothetical case, the IRS ruled on how to treat the work of an accounting firm that was not directly involved in the deal.

February 8, 2010

The Internal Revenue Code, specifically Section 162(a), states that a deduction is allowed for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. That may seem simple enough, but corporate taxpayers must consider how a related rule — Regulation Section 1.263(a)-5(a) — affects the deduction. Read more...

Follow this topic

Sign up for newsletters
Subscribe to our Mergers and Acquisitions RSS feed

More Mergers and Acquisitions Articles

Cablevision Shoots for an MSG Spin-off
The cable television giant sets a date to divest its Madison Square Garden network in what appears to be a tax-free transaction. February 1, 2010
King-Size PE Funds Underperform
Buyout funds larger than $4.5 billion lost 31.4% over one year and 3.1% over three years, raising caution among investors, says Preqin. January 13, 2010
Best of 2009: Tax
In a year when corporate profits took a beating, Congress and the IRS provided tax relief for companies with reported net operating losses. January 6, 2010
Venturing Back
A bad year for venture-backed deals ended with signs of hope for 2010. January 5, 2010
Presto! Weyerhaeuser's a REIT
To remain a qualified REIT, however, the forest products company must take care to meet technical rules, especially related to its non-REIT assets. January 4, 2010
Veritas Scores a Major Transfer-Pricing Victory
The tax court sides with the software company against the IRS. December 21, 2009
"Cross-Border" Spin-offs Can Be Tax-Free
If a company successfully jumps through an impressive – and complex – set of hoops, it can reap the rewards. December 14, 2009
Strategic Buyers Still in the Catbird Seat
Today's M&A market remains weak, but strategic buyers will lead a pickup in deal activity in 2010, according to a new survey of dealmakers. December 11, 2009
No Future Tax Shock for Bristol-Myers
Bristol-Myers Squibb should not suffer a tax hit for splitting off Mead-Johnson, even if the smaller company is scooped up within the two-year "prohibited" period. Here's why. November 25, 2009