Austin v. Commissioner
United States Board of Tax Appeals
1. The Revenue Act of 1918 does not permit the deduction as a bad debt of a part of an account or debt, the remainder being considered collectible. 2. A debt due to the decedent at the time of his death passes to his estate as capital or corpus of the estate, and the subsequent payment thereof, not in excess of the value of the debt at the date of decedent's death, is not taxable income to the estate. 3. The sale of stock under the circumstances obtaining and approximately…
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1. The Revenue Act of 1918 does not permit the deduction as a bad debt of a part of an account or debt, the remainder being considered collectible. 2. A debt due to the decedent at the time of his death passes to his estate as capital or corpus of the estate, and the subsequent payment thereof, not in excess of the value of the debt at the date of decedent's death, is not taxable income to the estate. 3. The sale of stock under the circumstances obtaining and approximately six months after the date of decedent's death is not alone sufficient to establish the value of such stock as of the date…
1Opinion of the Court
*1059OPINION.
Van Fossan:
With reference to the claimed bad debt deduction, the record leaves in doubt the amount of the deduction claimed, and the taxable period for which it is claimed. In the pleadings the error assigned is that the Commissioner failed “to include among deductions from taxable income for the period July 10, 1920, to December 31, 1920, an item of $56,155.21” as the loss sustained on notes for “money loaned to J. Y. Thompson * * * and determined to be worthless and charged off within the period in question.” It is alleged in the statement of facts, and admitted in the answer that…
2Cited by11 opinions
- Sletteland v. CommissionerUnited States Tax Court · 1965
- Rubert Armstrong v. Tribunal de Contribuciones de Puerto RicoSupreme Court of Puerto Rico · 1952
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1933
- Austin v. CommissionerUnited States Board of Tax Appeals · 1928
- Degener v. CommissionerUnited States Board of Tax Appeals · 1932
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