Bonynge v. Helvering

This case turns upon the question when a taxpayer must claim the deduction of a worthless debt from his gross income under § 23 (k) of the Revenue Act of 1934, 26 U.S.C.A. Int.Rev Acts, page 673. The taxpayer held a note of his son which became altogether uncollectible during the year 1934, though it was not due. until the next year. Supposing that he could not deduct the loss before the note fell due, the taxpayer did not deduct it in 1934. The Commissioner disallowed the deduction when he took it in 1935, and this decision the Board has affirmed.

De facto it is obvious that a debt may become…