Aftergood v. Commissioner
United States Tax Court
In 1944, petitioner deducted as a loss a $ 2,000 payment in compromise and settlement of his $ 5,000 note given as additional security in 1937 for the debt of a corporation of which he was managing director but which subsequently went out of business in 1938. Held, the amount paid by petitioner in settlement of the note was a nonbusiness bad debt within the meaning of section 23 (k) (4) of the Internal Revenue Code.
1Opinion of the Court
OPINION.
Rice, Judge:
Respondent contends'that petitioner’s payment of $2,000 in compromise and settlement of the action on his promissory note of $5,000 was in discharge of an individual obligation and, therefore, is not deductible from gross income; and, further, that the release and cancellation of the $3,000 was income properly includible in his 1944 Federal income tax return. Petitioner claims that the $2,000 payment was a business expense or a business loss properly deductible in 1944. In the alternative he contends that, in the event that income in the amount of $3,000 was realized,…
2Cases cited6 opinions
- Eckert v. BurnetSupreme Court of the United States · 1931
- Sherman v. CommissionerUnited States Tax Court · 1952
- Fox v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
- Fox v. CommissionerUnited States Tax Court · 1950
- Ingersoll v. Commissioner (A)United States Tax Court · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Stamos v. CommissionerUnited States Tax Court · 1954
- Martin v. CommissionerUnited States Tax Court · 1962
- McBride v. CommissionerUnited States Tax Court · 1955
- Acker v. CommissionerUnited States Tax Court · 1957
10 more not listed; retrieve them via the Exa API.