Findley v. Commissioner
United States Tax Court
Petitioner entered into a contract for the strip mining of coal, under which he advanced moneys to contractors for payroll and other operating expenses. He canceled the contract in April 1949; and he thereafter charged off part of the advances and claimed a partial bad debt deduction for the same in his 1948 return.
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Petitioner entered into a contract for the strip mining of coal, under which he advanced moneys to contractors for payroll and other operating expenses. He canceled the contract in April 1949; and he thereafter charged off part of the advances and claimed a partial bad debt deduction for the same in his 1948 return. Held, respondent did not err in disallowing the partial bad debt deduction for 1948, since in that year there was no change in the contractors' ability to repay the advances in the manner provided in the contract and no abandonment or charge-off of any part of the obligation as an…
1Opinion of the Court
OPINION.
Pierce, Judge:
The foregoing findings of fact show that for a period of approximately 1 year from May 24, 1948, the petitioner and the contractors, Wilkinson and Booth, were engaged in stripping coal from a tract in Elk County, Pennsylvania; and that these operations involved outlays of money by petitioner under two contracts, both executed on said date. Under one contract, the petitioner redeemed mining equipment from a bank and sold it to the contractors on a conditional sale agreement and promissory note for $56,000, payable in monthly installments. Under the other contract, which…
2Cases cited5 opinions
- Stranahan v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1930
- Hamlen v. WelchCourt of Appeals for the First Circuit · 1940
- Wilson Bros. & Co. v. CommissionerCourt of Appeals for the Ninth Circuit · 1941
- Capital Nat'l Bank v. CommissionerUnited States Tax Court · 1951
- E. Richard Meinig Co. v. CommissionerUnited States Tax Court · 1947
3Cited by1 opinion
- Findley v. CommissionerUnited States Tax Court · 1955