M. Seth Horne and Maurine D. Horne v. Commissioner of Internal Revenue

OPINION

Before CHAMBERS, Circuit Judge, BALDWIN, * Judge of the Court of Customs and Patent Appeals, and WALLACE, Circuit Judge. CHAMBERS, Circuit Judge:

The issue in this case is whether payments of approximately $300,000 made by taxpayer M. Seth Horne as indemnitor in connection with obligations of corporations in ■ which he owned a substantial interest are deductible as ordinary losses. Horne was the principal partner in a real estate development firm which owned all the outstanding shares of James Stewart and Co., Inc. (COINC). COINC had two wholly-owned subsidiaries, James Stewart…