Connecticut Mutual Life Insurance Company and Consolidated Subsidiaries - Page 25

                                       - 25 -                                         
          explained in INDOPCO, Inc. v. Commissioner, 503 U.S. at 86-87, it           
          was not articulating any new legal standard in holding that                 
          capitalization is required when expenditures provide the taxpayer           
          with significant future benefits.                                           
               Petitioner has failed to prove that its $20 million                    
          contribution to VEBA II in 1985 constitutes an ordinary and                 
          necessary business expense pursuant to section 162(a).  Rule                
          142(a); INDOPCO, Inc. v. Commissioner, supra at 84.  Respondent's           
          determination is, therefore, sustained.                                     



               Decision will be entered                                               
               for respondent.                                                        
                                                                                     
























Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  

Last modified: May 25, 2011