Estate of Schwehm v. Commissioner

OPINION.

Rice, Judge:

The issue to be decided is whether decedent, upon the releases given to Needles and Sundheim in 1945, incurred a deductible loss in that year for payments which he made to the Bank from January 13, 1933, through October 27, 1945, in the amount of $31,239.43 and for two payments to the Bank totaling $600 he made in November and December, 1945.

Petitioner’s claim that they are entitled to the deduction is based on the theory that the series of notes executed from July 16,1930, through May 5,1932, were accommodation notes. They maintain that decedent became an accommodation…