Lehman v. Commissioner

FRANK, Circuit Judge.

Section 23(k) of the Revenue Act of 1934, 26 U.S.C.A. Int.Rev.Code § 23 (k) (1), provides for deduction of “debts ascertained to be worthless and charged off within the taxable year * * *; and when satisfied that a debt is recoverable only in part, the Commissioner may allow such debt, in an amount not in excess of the part charged off within the taxable year, as a deduction.” Treasury Regulations 86, Art. 23(k)-l provides, “Before a taxpayer may charge off and deduct a debt in part, he must ascertain and be able to demonstrate, with a reasonable degree of certainty, the…