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Unformatted text preview: occurred prior to the date of the final judgment of such conviction, or (2) in settlement of any action brought under such section 4 on account of such violation or related violation. Therefore, MegaCorp, Inc cannot write this $5 million judgment as a business expense. Internal Revenue Code § 263 (4) Capital expenditures on special rule where risk of loss diminished. The running of any period of time applicable under paragraph (1)(B) (as modified by paragraph (2) shall be suspended during any period in which—(A) the taxpayer holds, has an option to buy, or is under a contractual obligation to buy, substantially identical stock or securities, or (B) under regulations prescribed by the Secretary, a taxpayer has diminished his risk of loss by holding 1 or more other positions with respect to substantially similar or related property. Therefore MegaCorp, Inc. has to put this judgment as a capital expenditure....
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- Summer '11
- Revenue, Capital Expenditure, Expense, Generally Accepted Accounting Principles, Operating expense, Alford plea