Raytheon Production Corp. V. Commissioner (Paperback)

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Raytheon Production Corp. v. Commissioner, 144 F.2d 110, 113 (1st Cir. 1943), cert. denied, 323 U.S. 779 (1944) is a United States income tax case which discusses the tax deductibility of damages for loss of business good will. It included the following holdings: * Under the tax code, business good will is not the present value of future profits, but present capital. * Thus, damages for the destruction of goodwill (rewarded under the Federal Anti-Trust Laws) are compensating for the destruction of a capital asset -- they are a "return" of this capital. * It is settled law that, while a recovery (as court-ordered damages) of future profits is taxable, a recovery (as damages) of present capital is not. * However, it is also settled law that compensatory damages are not tax-exempt just because they are a return of capital.