Garner v. Commissioner
United States Tax Court
P personally guaranteed a loan from a bank to his wholly owned corporation. Three years later, in an effort to meet the corporation's expenses, P also guaranteed another loan to the corporation. The corporation defaulted on both loans. After repaying the loans, P took a business bad debt deduction for both loans.
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P personally guaranteed a loan from a bank to his wholly owned corporation. Three years later, in an effort to meet the corporation's expenses, P also guaranteed another loan to the corporation. The corporation defaulted on both loans. After repaying the loans, P took a business bad debt deduction for both loans. P also took a worthless stock deduction on the corporation's stock for 1984. Held, the loan from the bank to the corporation was a nonbusiness bad debt because P guaranteed the loan to protect his investment. United States v. Generes, 405 U.S. 93, 31 L. Ed. 2d 62, 92 S. Ct. 827…
1Opinion of the Court
JAMES C. AND LILLIAN GARNER, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Garner v. Commissioner
Docket No. 27789-89
United States Tax Court
T.C. Memo 1991-569; 1991 Tax Ct. Memo LEXIS 617; 62 T.C.M. (CCH) 1260; T.C.M. (RIA) 91569;
November 25, 1991, Filed
Decisions will be entered under Rule 155.
P personally guaranteed a loan from a bank to his wholly owned corporation. Three years later, in an effort to meet the corporation's expenses, P also guaranteed another loan to the corporation. The corporation defaulted on both loans. After repaying the loans, P took a business bad debt…
2Cases cited14 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Boehm v. CommissionerSupreme Court of the United States · 1945
- United States v. GeneresSupreme Court of the United States · 1972
- Herbert W. Dustin and Kathleen C. Dustin v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1972
- Dustin v. CommissionerUnited States Tax Court · 1969
9 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- James C. And Lillian Garner v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1993