American Foundry Co. v. Commissioner
United States Board of Tax Appeals
The petitioner as of June 30, 1920, charged off an a debt ascertained to be worthless $94,619.03 owed to it by the Maxwell Motor Co. The debtor was ascertained to be in financial difficulties although not in the hands of a receiver at June 30, 1920. Held, that the amount charged off was not a legal deduction from gross income for the fiscal year ended June 30, 1920.
1Opinion of the Court
*577OPINION.
Smith:
Two questions are presented by this proceeding: (1) The right of the petitioner to deduct from gross income of the fiscal year ended June 30, 1920, $94,619.03 charged off as a bad debt, which amount represented an indebtedness to it of the Maxwell Motor Co. of Detroit, Mich.; and (2) whether the respondent failed to employ proper comparatives in the computation of the excess profits tax for the fiscal year ended June 30, 1920, in accordance with the requirements of section 328 of the Revenue Act of 1918. At the hearing of this case the petitioner waived the second point provided…
2Cited by4 opinions
- American Foundry Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Edwards v. CommissionerUnited States Tax Court · 1959
- Payer v. CommissionerUnited States Tax Court · 1946
- Roberts v. CommissionerUnited States Tax Court · 1948