Cadwalader v. Commissioner
United States Board of Tax Appeals
1. The taxpayer loaned $80,000 to one Stafford. There had been assigned to taxpayer as collateral, life insurance policies on the life of Stafford in the principal amount of $80,000. Stafford became bankrupt and was discharged. At the date of bankruptcy such policies had a cash surrender value of $24,586. The taxpayer did not surrender the policies or otherwise foreclose on them but continued them in force.
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1. The taxpayer loaned $80,000 to one Stafford. There had been assigned to taxpayer as collateral, life insurance policies on the life of Stafford in the principal amount of $80,000. Stafford became bankrupt and was discharged. At the date of bankruptcy such policies had a cash surrender value of $24,586. The taxpayer did not surrender the policies or otherwise foreclose on them but continued them in force. Held, that he continued to hold them as collateral and was not the owner. Held, further, that in the absence of any foreclosure on the collateral, no deduction was allowable under the…
1Opinion of the Court
OPINION.
Phillips.:
This proceeding comes before us on the petition of the executors of the estate of John Cadwalader, deceased, for a redeter-mination of deficiencies in tax upon' the income of the decedent for the years 1920 to 1924, inclusive. The facts have been stipulated making unnecessary the adoption of any formal findings of fact.
Prior to August 31, 1918, decedent had loaned to one Stafford $80,000 evidenced by the notes of the debtor. On August 31, 1918, a petition in involuntary bankruptcy was filed against Stafford, and on September 27, 1918, he was duly adjudged bankrupt. Stafford…
2Cases cited6 opinions
- Bank of Commerce v. ElliottWisconsin Supreme Court · 1901
- Evans v. Rounsaville & BrotherSupreme Court of Georgia · 1902
- McCall v. HerringSupreme Court of Georgia · 1902
- Smith v. ZachrySupreme Court of Georgia · 1902
- Morganstein v. Commercial National BankAppellate Court of Illinois · 1906
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Cadwalader v. CommissionerUnited States Board of Tax Appeals · 1929