Categories: Articles

IRS Creates Safe-Harbor for the Deduction of M&A Success Based Fees

The Internal Revenue Service has created a safe-harbor election under Revenue Procedure 2011-29 to allow taxpayers to allocate seventy percent (70%) of the success-based fees paid in business acquisitions or reorganization as a deduction against current ordinary income. If the election is made, the remaining thirty percent (30%) must be capitalized. This election can be made for success-based fees incurred in years ending on or after April 8, 2011. This Revenue Procedure clears up the uncertainty that has existed in how to allocate these fees.

Published by
ONeil Cannon

Recent Posts

IRS Invalidates Discounts Used in an FLP Formed Shortly Before Death

The recent Tax Court case Estate of Anne Milner Fields v. Commissioner underscores the risks…

4 days ago

Judge Blocks DOL Increase to Salary Thresholds for Exempt Workers

In April 2024, the Department of Labor announced a final rule, entitled Defining and Delimiting the…

4 days ago

What to Expect for Tax Policy in 2025 After Trump’s Election Victory

The recent election of Donald Trump as president signals potential changes to the U.S. tax…

1 week ago

Super Lawyers Recognizes 30 O’Neil Cannon Attorneys

Each year, Super Lawyers surveys the State of Wisconsin’s 15,000 attorneys and judges, seeking the State’s top…

1 week ago

O’Neil Cannon Ranked by Best Law Firms® in 2025

O’Neil Cannon has been recognized regionally in the 2025 edition of Best Law Firms®, ranked…

2 weeks ago

Steve Slawinski Published in State Bar’s Construction Blog

Construction lien waivers are an indispensable part of the traditional construction payment process, allowing parties…

2 weeks ago