Sherman v. Commissioner
United States Tax Court
1. The holder of a note liquidated certain of the endorser's collateral and applied the proceeds in part payment of the principal sum due on the note. The maker of the note was insolvent. Held, the endorser is entitled to a nonbusiness bad debt deduction under section 23 (k) (4) of the Internal Revenue Code. 2. The holder of a note liquidated certain of the endorser's collateral and applied the proceeds to the payment of interest due on the note.
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1. The holder of a note liquidated certain of the endorser's collateral and applied the proceeds in part payment of the principal sum due on the note. The maker of the note was insolvent. Held, the endorser is entitled to a nonbusiness bad debt deduction under section 23 (k) (4) of the Internal Revenue Code. 2. The holder of a note liquidated certain of the endorser's collateral and applied the proceeds to the payment of interest due on the note. Held, the endorser is entitled to an interest deduction under section 23 (b) of the Internal Revenue Code. 3. The holder of certain notes liquidated…
1Opinion of the Court
OPINION.
Hill, Judge:
Issues 1 and 2 are in reality a single issue and in this opinion will be treated as such. Petitioner as endorser guaranteed the debts of Sherrill Sherman, her husband, who had borrowed money and used the proceeds of the loan to provide working capital for a corporation, the stock of which was owned by the petitioner and Sherrill Sherman.
During 1944 and 1945 the FDIC liquidated certain collateral of the petitioner held by it and applied the proceeds in payment of the pi'incipal of the note of Sherrill Sherman identified as Asset No. 1939, which the petitioner had endorsed…
2Cases cited4 opinions
- Leslie v. CommissionerUnited States Tax Court · 1946
- Chestnut Securities Co. v. United StatesUnited States Court of Claims · 1945
- Fox v. CommissionerUnited States Tax Court · 1950
- Estate of Van Anda v. CommissionerUnited States Tax Court · 1949
3Cited by50 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Rushing v. CommissionerUnited States Tax Court · 1972
- Andrew v. CommissionerUnited States Tax Court · 1970
- Stamos v. CommissionerUnited States Tax Court · 1954
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