Exceptions to intangibles expense add back:

  • Taxpayer must demonstrate transaction is not to avoid taxes
  • Transaction was at arms-length
  • AND satisfies one of the following.

    The arms-length transaction was:
    • A pass through from a 3rd party to the related person with comparable rates and terms, or
    • Would be taxed by another jurisdiction, or
    • Addition is unreasonable based on facts and circumstances