Section 18 Deductibility of Stock Redemption Payments

• Library: Business Transitions 2009 Supp

Replace the first paragraph in the original section with the following:

I.R.C. § 162(k)(1) specifically disallows a deduction for “any amount paid or incurred by a corporation in connection with the reacquisition of its stock or the stock of any related person
(as defined in section 465(b)(3)(C)).” Excepted from this rule are any deductions:

• allowable under § 163, which relates to interest

• for amounts that are properly allocable to indebtedness and amortized over the term of the indebtedness

• for...