Le Roy v. Commissioner
United States Tax Court
1. Debt determined, on the facts, to have become worthless in 1940. 2. Petitioner purchased property located in the city of New York prior to the time city real estate taxes for that year became due and payable, and prior to the attachment of a lien for the taxes. Under the circumstances there was no personal liability for the taxes. Held, the full amount paid by petitioner in satisfaction of the tax liability is deductible by petitioner as "taxes paid."
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1. Debt determined, on the facts, to have become worthless in 1940. 2. Petitioner purchased property located in the city of New York prior to the time city real estate taxes for that year became due and payable, and prior to the attachment of a lien for the taxes. Under the circumstances there was no personal liability for the taxes. Held, the full amount paid by petitioner in satisfaction of the tax liability is deductible by petitioner as "taxes paid." An adjustment at the time of the sale, whereby the seller paid to petitioner, vendee, an amount covering a part of the taxes, for the period…
1Opinion of the Court
OPINION.
Aeundeul, Judge-.
The first issue involves the deduction of the amount of $1,500 as a bad debt. Briefly, the facts show that varying sums were loaned by and repaid to petitioner from November 15,1938, to July 1,1940, at which time the amount outstanding was $1,500. At that time petitioner made demand for payment. The debtor, who was hopelessly insolvent, was unable to pay. Petitioner then proceeded to sell the collateral, which he bid in himself at public auction for $100, paying $140 as expenses. These circumstances, we think, clearly show that the debt became worthless in 1940. On…
2Cases cited2 opinions
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Ernst Kern Co. v. CommissionerUnited States Tax Court · 1942
3Cited by12 opinions
- Adda, Inc. v. CommissionerUnited States Tax Court · 1947
- Asthmanefrin Co. v. CommissionerUnited States Tax Court · 1956
- Hubble v. CommissionerUnited States Tax Court · 1981
- Keil Properties, Inc. v. CommissionerUnited States Tax Court · 1955
- Industrial Trust Co. v. CommissionerUnited States Tax Court · 1952
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