Sternberg v. Commissioner
United States Board of Tax Appeals
1. Upon the evidence, held that an amount of $19,170.73 constituted unreturned investment in a joint venture and hence was not deductible as a bad debt in the year 1927; that petitioner is entitled to deduct $11,834.23 of such amount as a loss sustained in the year 1927; and that petitioner is not entitled to deduct the remaining $7,336.50 as a bad debt or loss in the year 1928. 2. Held that an amount of $53,391.84 received by petitioner in the year 1927 as damages for loss…
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1. Upon the evidence, held that an amount of $19,170.73 constituted unreturned investment in a joint venture and hence was not deductible as a bad debt in the year 1927; that petitioner is entitled to deduct $11,834.23 of such amount as a loss sustained in the year 1927; and that petitioner is not entitled to deduct the remaining $7,336.50 as a bad debt or loss in the year 1928. 2. Held that an amount of $53,391.84 received by petitioner in the year 1927 as damages for loss of anticipated profits resulting from breach of a contract constitutes income to petitioner in that year. 3. Upon the…
1Opinion of the Court
*1044OPINION.
McMahon :
The first question presented is whether the petitioner is entitled to deduct, in the calendar year 1928, an amount of $19,-170.73 as a debt ascertained to be worthless and charged off. Leó M. Geissal, who was office manager of the petitioner and had charge of petitioner’s books and records, and the petitioner himself, each testified that this amount represented “ advances ” made to the Cache River Dredge Co., which was a joint venture composed of the petitioner as an individual and A. Y. Wills & Sons, a corporation. It is not clear just what these witnesses meant by the word…
2Cited by7 opinions
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Horner v. CommissionerUnited States Tax Court · 1960
- Lopo v. CommissionerUnited States Tax Court · 1961
- Horner v. CommissionerUnited States Tax Court · 1960
- Kazdin v. CommissionerUnited States Tax Court · 1969
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