McBride v. Commissioner
United States Tax Court
In determining their community income for 1948, in separate returns filed by them, H. L. McBride and his wife, Janet, claimed a business bad debt deduction of $ 24,064.10 from McBride Oil Company, a corporation formed to exploit certain oil leases and in which McBride owned 25 per cent of the stock.
Read the full summary
In determining their community income for 1948, in separate returns filed by them, H. L. McBride and his wife, Janet, claimed a business bad debt deduction of $ 24,064.10 from McBride Oil Company, a corporation formed to exploit certain oil leases and in which McBride owned 25 per cent of the stock. Held: 1. Of the claimed debt of $ 24,064.10, (a) $ 2,535.50 was not advanced by McBride to the Oil Company until 1949, and (b) $ 12,847, which McBride Refining Company loaned to the Oil Company and on which McBride was a guarantor, did not represent a debt due McBride in 1948 because he made no…
1Opinion of the Court
OPINION.
Black, Judge:
In determining their community income for 1948, McBride and his wife, Janet, deducted $24,064.10 as a bad debt due from McBride Oil Company. It is clear from the evidence, however, that the debt due McBride at the close of 1948 was no greater than $8,681.60, • which was the final balance for the 1948 calendar year recorded as due him on the Oil Company’s accounts payable ledger.
McBride and Janet included an additional $2,535.50 in the claimed deduction, but the accounts payable ledger reveals that that sum was not advanced by McBride to the Oil Company until 1949. They…
2Cases cited6 opinions
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- Sherman v. CommissionerUnited States Tax Court · 1952
- Stamos v. CommissionerUnited States Tax Court · 1954
- New York Water Service Corp. v. CommissionerUnited States Tax Court · 1949
- Redman v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- McBride v. CommissionerUnited States Tax Court · 1955