Acheson v. Commissioner of Internal Revenue

McCORD, Circuit Judge.

This appeal involves the income tax liability of Margaret M. Acheson. The taxpayer sought to deduct in 1935 the amount of $143,252.54 as a bad debt under Sec. 23 (k) of the Revenue Act of 1934, 264. U. S.C.A. Int.Rev.Acts, page 673, and Treasury Regulation 86, promulgated thereunder. The Commissioner disallowed the deduction and his action was affirmed by the Tax Court.

The taxpayer assigns as error the holding of the Tax Court, (1) that taxpayer was not entitled to the rights of a subrogee, and (2) that the debt was not ascertained to be worthless within the taxable year…