Stern v. Commissioner
United States Board of Tax Appeals
1. In determining whether the cost of securities of an American citizen seized by the German Alien Property Custodian may be deducted, it is necessary to distinguish between a loss sustained and a debt ascertained to be worthless and charged off. 2. The cost of bonds seized by the German Alien Property Custodian can not be deducted as debts ascertained to be worthless in the absence of any showing of the financial condition of the debtor. 3. Where bonds of an American…
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1. In determining whether the cost of securities of an American citizen seized by the German Alien Property Custodian may be deducted, it is necessary to distinguish between a loss sustained and a debt ascertained to be worthless and charged off. 2. The cost of bonds seized by the German Alien Property Custodian can not be deducted as debts ascertained to be worthless in the absence of any showing of the financial condition of the debtor. 3. Where bonds of an American citizen were seized by the German Alien Property Custodian in 1918, the citizen lost all right, title, and interest in said…
1Opinion of the Court
*92OPINION.
Phillips:
At the time the United States entered the World War in 1917 the petitioners had certain bonds, stock and bank deposits in Germany, which were seized in 1918 by the German Alien Property Custodian. They seek to deduct as debts ascertained to be worthless and charged off in 1919, the March 1, 1913, value (which was less than cost) of the German Government, municipal and corporation bonds, and the cost to them of the bank deposit. The evidence establishes that such bonds are, under the German law as under our laws, evidences of indebtedness and therefore the subject of such a…
2Cases cited1 opinion
- United States v. DiekelmanSupreme Court of the United States · 1876
3Cited by8 opinions
- Halliburton Co. v. CommissionerUnited States Tax Court · 1989
- Piggly Wiggly Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Estate of Fuchs v. CommissionerUnited States Tax Court · 1968
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1928
- Halliburton Co. v. CommissionerUnited States Tax Court · 1989
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