Guggenheimer v. Commissioner
United States Tax Court
The taxpayer and his brother and sister acquired by their mother's will securities and rented buildings which they held as partners from 1928 until 1940. The taxpayer, acting as manager, operated the properties at a constant loss, and individually advanced funds for operation and conservation, which were credited to his account and charged against the three partners.
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The taxpayer and his brother and sister acquired by their mother's will securities and rented buildings which they held as partners from 1928 until 1940. The taxpayer, acting as manager, operated the properties at a constant loss, and individually advanced funds for operation and conservation, which were credited to his account and charged against the three partners. In 1939 the brother and sister demanded an accounting, which disclosed insolvency and indicated substantial amounts due from them; the taxpayer had a credit balance. The brother and sister rejected the accounting, and in 1940 the…
1Opinion of the Court
OPINION.
Johnson, Judge:
Petitioner assails the Commissioner’s disallowance of $38,927.91 claimed as a bad debt deduction on his 1940 income tax return. He contends that the amount represents the ascertained worthlessness of debts created by his advances to the partnership, or, in the alternative, that it is deductible as a loss under section 23 (e) (2), Internal Revenue Code.
Petitioner, his brother Randolph Guggenheimer, and his sister Adele G. Lewisohn, having acquired securities and improved real estate under the will of their mother, held and operated these properties under the form of a…
2Cases cited2 opinions
- Herrick v. GuildAppellate Division of the Supreme Court of the State of New York · 1939
- Lasky v. CoverdaleAppellate Terms of the Supreme Court of New York · 1914
3Cited by14 opinions
- Loewi & Co. v. CommissionerUnited States Tax Court · 1954
- Kugel v. RyanCourt of Appeals for the Second Circuit · 1961
- Kyne v. United StatesDistrict Court, W.D. Kentucky · 1958
- Henry Protzmann v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1960
- Kugel v. RyanCourt of Appeals for the Second Circuit · 1961
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