Fuller v. Commissioner
United States Tax Court
Petitioner made a series of loans to two corporations. The first corporation was a distributor of frozen foods and the second was a retailer of frozen foods. When the loans became worthless, petitioner was not in the business of promoting, financing, managing, and loaning money to corporations; nor was he in the business of distributing frozen foods. Held, the worthless loans represented nonbusiness bad debts deductible only under section 23 (k) (4), Internal Revenue Code.
1Opinion of the Court
OPINION.
Bruce, Judge:
Petitioner contends that the $15,000 unpaid balance on loans to Parish Foods and the $18,500 unpaid balance on loans to Fuller Foods which became worthless in 1947 and 1948, respectively, were business bad debts deductible in full under section 23 (k) (1), Internal Revenue Code. In opposition to the position taken by the petitioner, the respondent has determined that the loans are deductible only under section 23 (k) (4) as nonbusiness bad debts to be treated for tax purposes as short-term capital losses.
Section 23 (k) (1) authorizes the deduction from gross income of…
2Cases cited10 opinions
- Burnet v. ClarkSupreme Court of the United States · 1932
- Campbell v. CommissionerUnited States Tax Court · 1948
- Boissevain v. CommissionerUnited States Tax Court · 1951
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
- Smith v. CommissionerUnited States Tax Court · 1951
5 more not listed; retrieve them via the Exa API.
3Cited by36 opinions
- Towers v. CommissionerUnited States Tax Court · 1955
- Stamos v. CommissionerUnited States Tax Court · 1954
- Samuel Towers v. Commissioner of Internal Revenue, and Three Related CasesCourt of Appeals for the Second Circuit · 1957
- Standard Linen Service, Inc. v. CommissionerUnited States Tax Court · 1959
- Nash v. CommissionerUnited States Tax Court · 1958
31 more not listed; retrieve them via the Exa API.