Mitchell v. Commissioner
United States Tax Court
Where petitioner partially charged off two sets of demand notes and then sold both sets later in the same taxable year at a price equal to their reduced value, held, that petitioner was entitled to capital loss deductions on the sales rather than partial bad debt deductions on the notes.
1Opinion of the Court
OPINION.
Hill, Judge:
On December 1, 1944, petitioner charged off on his books to the extent of $21,161.08 three demand notes of his partner, C. O. M. Sprague, upon which a total balance of $22,161.08 was owing. Later the same day petitioner sold these notes to Irving Sprague, brother of the debtor, for $1,000. Similarly, on December 5, 1944, petitioner charged off on his books in the amount of $14,637.46 three demand notes of his partner, John Whipple, upon which a total balance of $15,137.46 was owed. At a subsequent hour that day he sold these obligations to Lawrence Whipple, brother of the…
2Cases cited2 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- McClain v. CommissionerSupreme Court of the United States · 1941
3Cited by12 opinions
- Levine v. CommissionerUnited States Tax Court · 1959
- Von Hoffman Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1958
- Lorch v. CommissionerUnited States Tax Court · 1978
- Ardela, Inc. v. CommissionerUnited States Tax Court · 1969
- Von Hoffmann Corp. v. CommissionerUnited States Tax Court · 1957
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