Bair v. Commissioner of Internal Revenue

SWAN, Chief Judge.

This appeal involves the income tax liability for the year 1945 of the petitioners, husband and wife, who reported their income on a cash basis. There are two distinct issues, one concerning an interest item of $1,109.14 credited to Mrs. Bair on the books of the Goldsmith Trust, of which she was one of the settlors and beneficiaries, but not reported as income of the petitioners ; the other concerning an item of $13,-378.74 representing a loss sustained by Mr. Bair on the liquidation of a corporation and claimed as a bad' debt deduction. Both issues were decided adversely to…