Funk v. Commissioner
United States Tax Court
1. Held, a note transferable on the books of the debtor corporation is a "security" (sec. 23(k)(3), I.R.C. 1939), and therefore the deduction for its worthlessness is limited by section 23(k)(2). Cf. Carl Oestreicher, 20 T.C. 12. 2. Held, loans aggregating $ 32,500 formed the basis for business bad debts; such loans to a publishing company controlled by petitioner were proximately related to his occupation as a professional writer. 3. Held, advances to the corporation,…
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1. Held, a note transferable on the books of the debtor corporation is a "security" (sec. 23(k)(3), I.R.C. 1939), and therefore the deduction for its worthlessness is limited by section 23(k)(2). Cf. Carl Oestreicher, 20 T.C. 12. 2. Held, loans aggregating $ 32,500 formed the basis for business bad debts; such loans to a publishing company controlled by petitioner were proximately related to his occupation as a professional writer. 3. Held, advances to the corporation, aggregating $ 55,000, at a time when it was in very poor financial condition were capital contributions and not true loans;…
1Opinion of the Court
OPINION.
Raum, Judge:
Petitioner presently contends that he is entitled to a business bad debt deduction for 1953 in the amount of $136,946.86, consisting of three separate items or groups of items, all of them involving loans or advances previously made by him to Wilfred Funk, Inc.1 That petitioner incurred these losses in 1953 is uncontroverted, the only issue being whether they are deductible in full as business bad debts, as claimed by him, or whether the deduction of one or more of the component items is limited by statute, as a loss on a registered security, nonbusiness bad debt or…
2Cases cited7 opinions
- H. Beale Rollins and Mary E. Rollins v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Rollins v. CommissionerUnited States Tax Court · 1959
- Bihlmaier v. CommissionerUnited States Tax Court · 1951
- Martin v. CommissionerUnited States Tax Court · 1955
- Gerard v. HelveringCourt of Appeals for the Second Circuit · 1941
2 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Kean v. CommissionerUnited States Tax Court · 1988
- La Staiti v. CommissionerUnited States Tax Court · 1980
- Dunmire v. CommissionerUnited States Tax Court · 1981
- Funk v. CommissionerUnited States Tax Court · 1960
- Kean v. CommissionerUnited States Tax Court · 1988
4 more not listed; retrieve them via the Exa API.