D. P. Harris Hardware & Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. No option or election exists in section 234 of the Revenue Act of 1926 by which a taxpayer may take a deduction on account of a loss arising from a worthless debt, either in the year when the debt became worthless or in the year when the debt was ascertained to be worthless and charged off, but such deduction can only be allowed in the year when ascertained to be worthless and charged off. 2. Deductions denied on account of debts which were not ascertained to be worthless…
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1. No option or election exists in section 234 of the Revenue Act of 1926 by which a taxpayer may take a deduction on account of a loss arising from a worthless debt, either in the year when the debt became worthless or in the year when the debt was ascertained to be worthless and charged off, but such deduction can only be allowed in the year when ascertained to be worthless and charged off. 2. Deductions denied on account of debts which were not ascertained to be worthless and charged off within the taxable year.
1Opinion of the Court
*757OPINION.
Seawell :
In the original petition, the deductions now sought were claimed on account of debts ascertained to be worthless in the several years under review, but at the hearing claims on that ground were abandoned and the same relief was asked in an amended petition on account of “ Losses sustained during the taxable year and not compensated for by insurance or otherwise.” (Section 234 (a) (4) of the *758Revenue Act of 1926.) In other words, we do not understand it is now contended that the deductions can be allowed under the “bad-debt ” provisions of the statute (section 234 (a) (5) of…
2Cases cited2 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Lewellyn v. Electric Reduction Co.Supreme Court of the United States · 1927
3Cited by5 opinions
- Betts v. CommissionerUnited States Tax Court · 1974
- Pryibil v. CommissionerUnited States Board of Tax Appeals · 1934
- Betts v. CommissionerUnited States Tax Court · 1974
- D. P. Harris Hardware & Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Searles Real Estate Trust v. CommissionerUnited States Board of Tax Appeals · 1932