U.S. tax court says amortization of cable franchise costs OK.

Multichannel News, November, 1990 by Thompson, Rachel

U.S. Tax Court Says Amortization of Cable Franchise Costs OK Washington -- In a victory for TeleCommunications Inc. and the cable industry as a whole, the United States Tax Court ruled last week that MSOs can continue to amortize the cost of acquiring a cable franchise under Section 1253 of the U.S.

Tax Code. "The taxpayer (TCI) won on every point," said Roger J. Jones of the Chicago-based law firm of Mayer, Brown & Platt and counsel to TCI on the case. He added that industrywide, the decision represents "easily hundreds of millions (of dollars) in deductions." The court's opinion, which will be followed by an order, ensures that cable MSOs can continue to deduct the non-tangible value of a cable franchise without fear of having that claim...

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