Lesser v. Commissioner
United States Tax Court
1. A $ 124,148.80 loss sustained by a real estate partnership in respect of its obligations as a guarantor of certain loans in connection with its participation in the development of several subdivisions was treated by the parties as a loss from a bad debt.
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1. A $ 124,148.80 loss sustained by a real estate partnership in respect of its obligations as a guarantor of certain loans in connection with its participation in the development of several subdivisions was treated by the parties as a loss from a bad debt. Held, such loss is to be classified as arising from a "business" rather than a "nonbusiness" bad debt. 2. Held, petitioners have failed to prove that the Commissioner erred in reducing by $ 62,074.40 a $ 187,000 deduction claimed by the partnership on the ground that to that extent the deduction claimed was a duplication of a deduction…
1Opinion of the Court
OPINION
Baum, Judge:
1. $124148.80 Bad Debt Issue.- — A deduction for business bad debts in the amount of $124,148.80 was taken in Enterprises’ return for its fiscal year ending June 30, 1958, based upon payments of $84,706.12 and $39,442.68 in fulfillment of its guarantee of Universal’s obligations in respect of the Marysville and San Bruno projects. The Commissioner’s disallowance of the deduction was in substance on the sole ground that the loss had not yet occurred during that year. At the trial the Commissioner conceded that the loss was sustained in that year, but argued that it resulted…
2Cases cited8 opinions
- Whipple v. CommissionerSupreme Court of the United States · 1963
- George P. Weddle and Bertha R. (Terris) Weddle v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1963
- Goldsmith v. CommissionerUnited States Tax Court · 1958
- Lynchburg Nat'l Bank & Trust Co. v. CommissionerUnited States Tax Court · 1953
- Lynchburg Nat. Bank & Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1953
3 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Dielectric Materials Co. v. CommissionerUnited States Tax Court · 1972
- Leonard Lundgren and Evelyn Lundgren v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1967
- Mitchell v. CommissionerUnited States Tax Court · 1966
- Milbank v. CommissionerUnited States Tax Court · 1969
- Fieland v. CommissionerUnited States Tax Court · 1980
15 more not listed; retrieve them via the Exa API.