Spellman v. Comm’r, 845 F.2d 148 (7th Cir. 1988)

Since 1954 a taxpayer has been allowed to deduct from his income, as a current expense, “research or experimental expenditures which are paid or incurred … during the taxable year in connection with his trade or business.” 26 U.S.C. Sec. 174(a)(1). This exceptional treatment–exceptional because research and development expenditures are capital in nature, since they […]