Tax Court Cites Factors in Noncompete Valuation

Business Valuation UpdateVol. 2 No. 1
Legal and Court Case Update
January 1996
5072 Hardware
444130 Hardware Stores
federal taxation

Beaver Bolt v. Commissioner
T.C. Memo 1995-549
November 20, 1995
Federal Court
United States Tax Court
William E. Holmer (for respondent) Gregory A. Gilbert (for petitioner)


The IRS disallowed a depreciation deduction for a covenant not to compete, saying it had no value.

See Also

Beaver Bolt v. Commissioner

At issue is whether petitioner may amortize $ 383,400, or some other amount, for the ex-vice president of Beaver Bolt's covenant not to compete.