Martin v. Commissioner
United States Tax Court
Petitioners owned a piece of real estate and contracted with builders for the erection of a residence thereon at a fixed price. At the time the house was completed unpaid mechanics and materialmen filed liens against petitioners' property.
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Petitioners owned a piece of real estate and contracted with builders for the erection of a residence thereon at a fixed price. At the time the house was completed unpaid mechanics and materialmen filed liens against petitioners' property. In order to prevent foreclosure and the loss of their house petitioners paid and satisfied these claims, such payments being in excess of $ 6,000. At that time the debts owed by the builders, to which petitioners were subrogated by such payments, were uncollectible as against the builders. During each of the taxable years petitioners deducted $ 1,000 on…
1Opinion of the Court
OPINION.
Kern, Judge:
The question presented by this case concerns the propriety of a deduction of $1,000 taken by petitioners in each of the taxable years on account of the circumstances set forth in our findings of fact.
Eespondent contends that the payments made by petitioners to the unpaid materialmen and mechanics “resulted in losses instead of bad debts which, the petitioners, as individuals, may not deduct” under any provision of the Internal Eevenue Code1 and, in the alternative, that if the payments resulted in debts owned by petitioners they were valueless at the time of their creation…
2Cases cited10 opinions
- Shiman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1932
- Stamos v. CommissionerUnited States Tax Court · 1954
- Ellisberg v. CommissionerUnited States Tax Court · 1947
- Thompson v. CommissionerUnited States Tax Court · 1954
- Houk v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1949
5 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Arrigoni v. CommissionerUnited States Tax Court · 1980
- Iowa Southern Utilities Company v. The United StatesUnited States Court of Claims · 1965
- Arrigoni v. CommissionerUnited States Tax Court · 1980
- Buchanan v. United StatesDistrict Court, N.D. Illinois · 1995
- Dapice v. CommissionerUnited States Tax Court · 1983
5 more not listed; retrieve them via the Exa API.