Immediate Deductions Allowable for Sales-Based Royalties

In Robinson Knife Mfg. Co. v. Comm'r , 600 F.3d 121 (2d Cir. 2010) , the U.S. Court of Appeals for the Second Circuit agreed with Hodgson Russ's client's position that royalty payments for using licensed trademarks in connection with sales of kitchen tools were immediately deductible. The...

Immediate Deductions Found Allowable for Sales-Based Royalties

In Robinson Knife Mfg. Co. v. Comm'r , 600 F.3d 121 (2d Cir. 2010) , the U.S. Court of Appeals for the Second Circuit agreed with Hodgson Russ's client's position that royalty payments for using licensed trademarks in connection with sales of kitchen tools were immediately deductible. The...

Robinson Knife Mfg. Co. v. Comm'r, 600 F.3d 121 (2d Cir. 2010)

Robinson Knife Mfg. Co. v. Comm'r, 600 F.3d 121 (2d Cir. 2010) held that, where a producer's royalty payments (1) are calculated as a percentage of sales revenue from inventory and (2) are incurred only upon the sale of that inventory, they are immediately deductible as a matter of law because...