Tax Court Denies Amortization of Lion's Share of Employment Agreement and Noncompete Payments

Business Valuation UpdateVol. 2 No. 4
Legal and Court Case Update
April 1996
5511 Motor Vehicle Dealers (New and Used)
441110 New Car Dealers
federal taxation
intangible assets

Heritage Auto Center v. Commissioner
T.C. Memo 1996-21
January 23, 1996
Federal Court
United States Tax Court


The Totem Lake dealerships of Kirkland, Wash., while under the ownership of Mr. Wright, experienced a great deal of negative publicity which resulted in sustained financial losses for 1986 and 1987.

See Also

Heritage Auto Center v. Commissioner

At issue is whether petitioner is entitled to deductions for amortization of amounts paid to William Wright for a noncompetition and consulting agreement.