Colvert v. Commissioner
United States Board of Tax Appeals
1. The debt herein was properly ascertained to be worthless and charged off in the taxable year, and constituted a deduction from gross income. 2. A taxpayer on the cash receipts and disbursements basis may not deduct from gross income the amount of a note given for an antecedent obligation, where it is not shown that the note was accepted as payment.
1Opinion of the Court
*625OPINION.
Marquette:
The first question presented herein is whether the petitioner, in computing his net income for the year 1920, is entitled to deduct as a bad debt the amount of $3,200 represented by the note given to him by George Colvert in the year 1913. The respondent contends that the note became barred by the Texas statute of limitations in the year 1917, and that it was, therefore, worthless in that year. The petitioner, however, insists that, even if the note ■was barred by the Texas statute, George Colvert moved to Oklahoma in the year 1919 and that the payment of interest in…
2Cases cited1 opinion
- Ohio Cultivator Co. v. DunkinSupreme Court of Oklahoma · 1917
3Cited by2 opinions
- Colvert v. CommissionerUnited States Board of Tax Appeals · 1927
- W. C. Mitchell Co. v. CommissionerUnited States Board of Tax Appeals · 1933