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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...

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