Tax Court Details Noncompete Covenant

Business Valuation UpdateVol. 3 No. 9
Legal and Court Case Update
September 1997
5122 Drugs, Drug Proprietaries, and Druggists' Sundries
446120 Cosmetics, Beauty Supplies, and Perfume Stores
federal taxation
s corporation

Thompson, C v. Commissioner (II)
1997 Tax Ct. Memo LEXIS 341
June 24, 1997
Federal Court
United States Tax Court
Paul H. Meade (for respondent) Mark L. Mitchell (for petitioner)


The issue in this case is whether State Supply, a distributor of beauty supply products organized as an S corporation, may amortize $2.5 million for noncompete covenants.

See Also

Thompson, C v. Commissioner (II)

Case name: Thompson v. Commissioner Citation: 1997 Tax Ct. Memo LEXIS 341 At issue is whether State Supply may amortize $ 2.5 million, or some lesser amount, for covenants not to compete.