Davidson Grocery Co. v. Commissioner
United States Board of Tax Appeals
In 1920 the petitioner determined that a portion of certain accounts receivable would never be collected and accordingly charged off to profit and loss the portions which it determined would not be collected. Held, that the amounts charged off are not deductible from gross income.
1Opinion of the Court
*183OPINION.
Smith:
The first assignment of error is that the respondent has erroneously disallowed the deduction from gross income of 1920 of $12,085.51, debts ascertained to be worthless and charged off during the year. The statement of facts’ contained in the petition upon this point is as follows:
5. The facts upon which petition relies as the' basis of this appeal are as follows:
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*184(b) Petitioner sold merchandise to the retail trade on open account. During 1920 accounts to the amount of $12,085.51 became worthless and were charged off petitioner’s books as bad debts. This amount was…
2Cases cited1 opinion
- Lewellyn v. Electric Reduction Co.Supreme Court of the United States · 1927
3Cited by4 opinions
- Davidson Grocery Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Lafayette Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976
- Putoma Corp. v. CommissionerUnited States Tax Court · 1976