New Jersey Tax Court Holds Added-Back Royalty Payments by Subsidiary Can Be Deducted

New Jersey Tax Court Holds Added-Back Royalty Payments by Subsidiary Can Be Deducted

Tax Court of New Jersey

The New Jersey Tax Court held that payments made by a subsidiary for the use of software produced an intangible expense for the subsidiary for corporate business tax purposes, but the deduction for the payments was still permitted as the taxpayer proved that disallowing the exception to the addback would be unreasonable.

The New Jersey Tax Court held that payments made by a subsidiary for the use of software produced an intangible expense for the subsidiary for corporate business tax purposes, but the deduction for the payments was still permitted as the taxpayer proved that disallowing the exception to the addback would be unreasonable.

The New Jersey Tax Court held that payments made by a subsidiary to a parent for the use of software produced an intangible expense for the subsidiary for corporate business tax purposes, but the deduction for the payments was still permitted as the taxpayer proved that disallowing the exception to the addback would be unreasonable.

The New Jersey Tax Court held that payments made by a subsidiary to a parent for the use of software produced an intangible expense for the subsidiary for corporate business tax purposes, but the deduction for the payments was still permitted as the taxpayer proved that disallowing the exception to the addback would be unreasonable.