Meltzer v. Commissioner

PHILLIPS, Circuit Judge.

This is a petition to review a decision of the Tax Court. Petitioners Joseph Meltzer 1 and Bertha Meltzer, husband and wife, filed a joint tax return for 1941, in which they claimed a deduction of $13,000 as a bad debt.

Sec. 23 of the Revenue Act of 1942, 26 U.S.C.A. Int.Rev.Code, § 23, provides:

“In computing net income there shall be allowed as deductions: * * *

“(k) (1) Debts which become worthless within the taxable year.”

The amendment was approved October 21, 1942, and by its terms was retroative so as to include the year 1941. Section 124(d), 26 U.S.C.A.…