Jeddeloh v. Department of Revenue

This case involves an appeal by the plaintiff-taxpayer1 from an adverse decision by the Tax Court. Jeddeloh v. Dept. of Rev., 7 OTR 49 (1977). Certain of the taxpayer’s debts became worthless in 1973 and were claimed as a business bad debt loss deduction on the taxpayer’s 1973 Oregon Personal Income Tax Return. The Department of Revenue (Department) disallowed the deduction of the full amount of the bad debt loss, claimed that the loss was a non-business bad debt and entitled only to short-term capital loss treatment, and allowed a deduction only to the extent of capital gain plus up to…