Bush v. United States

NORDBYE, District Judge.

The question presented relates to the de-ductibility in the year 1938 of an alleged bad debt in the sum of $4,200 under Section 23 (k) of the Revenue Act of 1936, 26 U.S. C.A. Int.Rev.Acts, page 828. The pertinent facts are as follows: Plaintiff, at the instance of one Mr. Voss, made two loans to a Mr. Hinkhouse; the first loan was in the sum of $1,000 in August, 1937, and the second in the sum of $3,400 on January 4, 1938. Mr. Hinkhouse resided in a neighboring state, and it appears that in August, 1937, he was in dire need of funds. Plaintiff then made a loan to him…