Ferguson v. Commissioner
United States Tax Court
Deductions -- Bad Debts -- Business or Nonbusiness. -- Petitioner advanced moneys to a corporation of which he was president-general manager. He does not contend that such was his business, but that his business was promoting, organizing, and managing various enterprises in the field of low cost housing. He was salaried president, chairman, and manager of another corporation, managing very extensive construction.
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Deductions -- Bad Debts -- Business or Nonbusiness. -- Petitioner advanced moneys to a corporation of which he was president-general manager. He does not contend that such was his business, but that his business was promoting, organizing, and managing various enterprises in the field of low cost housing. He was salaried president, chairman, and manager of another corporation, managing very extensive construction. Held, he was not engaged in the business of promoting, organizing and managing business enterprises as claimed, and that the advances were nonbusiness debts within section 23 (k)…
1Opinion of the Court
OPINION.
Disnev, Judge:
The petitioner advanced to Wood Products, Inc., $4,114.01 before incorporation and $24,297.64 after incorporation, and upon incorporation transferred to it assets valued at $3,931.26. The total, $32,342.91, the parties both treat as a bad debt which became worthless in 1947 and are in agreement that the question presented is Whether it was an ordinary bad debt under section 23 (k) (1) of the Internal Revenue Code or a “nonbúsiness debt” within the definition of section 23 (k) (4), and therefore the resulting loss should be treated as a short-term capital loss as therein…
2Cases cited9 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Dalton v. BowersSupreme Court of the United States · 1932
- Campbell v. CommissionerUnited States Tax Court · 1948
- Snyder v. CommissionerSupreme Court of the United States · 1935
- Washburn v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1931
4 more not listed; retrieve them via the Exa API.
3Cited by46 opinions
- Boissevain v. CommissionerUnited States Tax Court · 1951
- Towers v. CommissionerUnited States Tax Court · 1955
- Smith v. CommissionerUnited States Tax Court · 1951
- Bihlmaier v. CommissionerUnited States Tax Court · 1951
- Estate of Palmer v. CommissionerUnited States Tax Court · 1951
41 more not listed; retrieve them via the Exa API.