Levine v. Commissioner
United States Tax Court
Petitioner's loans to corporation, and unrecouped guaranty payment, later transferred for nominal amount, being wholly uncollectible and proximately related to petitioner's individual business, held, to constitute business bad debts deductible as such rather than merely as capital losses.
1Opinion of the Court
OPINION.
Oppek, Judge:
Respondent determined that petitioner’s loss when he was required to make good on a guaranty was a “nonbusiness bad debt” — a result possible only if the primary debtor was unable to reimburse him. At the same time, respondent has determined that other debts owed to petitioner by the primary debtor did not become worthless during the taxable year.
Without regard to this apparent inconsistency, the record seems to us to show prima facie that all of the indebtedness became worthless early in the tax year, and that any burden of going forward was shifted to respondent. The…
2Cases cited15 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- De Loss v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1928
- Berwind v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- Blum v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950
- Williams v. CommissionerUnited States Tax Court · 1957
10 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Mance T. Spillers and Mary J. Spillers v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1969
- United States v. H. F. Keeler and Alice H. Keeler, His WifeCourt of Appeals for the Ninth Circuit · 1962
- J. E. Hawes Corp. v. CommissionerUnited States Tax Court · 1965
- Funk v. CommissionerUnited States Tax Court · 1960
- Lorch v. CommissionerUnited States Tax Court · 1978
12 more not listed; retrieve them via the Exa API.