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may be granted if the evidence submitted by the nonmoving party
is merely colorable or not significantly probative. Anderson v.
Liberty Lobby, Inc., 477 U.S. 242, 249 (1986).
An accrual method taxpayer such as Chrysler may deduct an
expenditure under section 162(a) only if the expenditure is:
(1) An expense, (2) an ordinary expense, (3) a necessary expense,
(4) incurred during the taxable year, and (5) made to carry on a
trade or business. Commissioner v. Lincoln Sav. & Loan
Association, 403 U.S. 345, 352-353 (1971); see also Lychuk v.
Commissioner, 116 T.C. 374, 386 (2001). A necessary expense is
an expense that is appropriate or helpful to the development of
the taxpayer’s business. Commissioner v. Tellier, 383 U.S. 687,
689 (1966); Welch v. Helvering, 290 U.S. 111, 113-115 (1933).
An ordinary expense is an expense that is “normal, usual, or
customary” in the type of business involved. Deputy v. du Pont,
308 U.S. 488, 495-496 (1940); see also Welch v. Helvering, supra
at 113-115. The need for an expenditure to be ordinary serves,
in part, to “clarify the distinction, often difficult, between
those expenses that are currently deductible and those that are
in the nature of capital expenditures, which, if deductible at
all, must be amortized over the useful life of the asset.”
Commissioner v. Tellier, supra at 689-690.
Before the passage of the Tax Reform Act of 1986, Pub. L.
99-514, 100 Stat. 2085, the cost of redeemed stock was more often
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