Deal Break-Up Fees and Joint Ventures: Comcast's California Appeal Presents Interesting Issues to Watch

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Comcast Cablevision is challenging a California assessment based on the state's treatment of a “break-up fee” by a would-be acquisition as business income and its contention that the taxpayer's 57 percent interest in a home shopping network renders it unitary with the TV retailer. In this article, Kyle O. Sollie and Brian W. Toman, of Reed Smith LLP, review Comcast's arguments and the lessons other taxpayers might draw from the case.

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