Douglas County Light & Water Co. v. Commissioner
United States Board of Tax Appeals
1. LOSS - EMBEZZLEMENT. - Where an officer of the petitioner misappropriated some of its bonds prior to 1915, which was not discovered until a year or two later, and where said officer gave his note in 1921 to make good the shortage, and went into bankruptcy in 1922 and nothing was paid on said note, the loss occurred at the time of the misappropriation and is not deductible as a bad debt in 1922. 2. GAIN. - Where petitioner canceled or redeemed its own bonds at less than…
Read the full summary
1. LOSS - EMBEZZLEMENT. - Where an officer of the petitioner misappropriated some of its bonds prior to 1915, which was not discovered until a year or two later, and where said officer gave his note in 1921 to make good the shortage, and went into bankruptcy in 1922 and nothing was paid on said note, the loss occurred at the time of the misappropriation and is not deductible as a bad debt in 1922. 2. GAIN. - Where petitioner canceled or redeemed its own bonds at less than amount it received, the difference between said amount and the amount it paid is not taxable income. 3. DEPRECIATION. -…
1Opinion of the Court
*1056OPINION.
Milliken:
So far as the year 1922 is concerned the only question before us is the correctness of respondent’s refusal to allow a deduction for the note of A. Welch for $16,000, as all other adjustments made by respondent for that year were agreed to by petitioner at the hearing.
The evidence shows and both parties agree that this claim of $16,000 represented by the note had its origin in an embezzlement or misappropriation of petitioner’s bonds between 1912 and 1915. Section 234 (a) of the Revenue Act of 1921 provides for deductions for “losses sustained during the taxable year and not…
2Cases cited1 opinion
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
3Cited by6 opinions
- John Thatcher & Son v. CommissionerUnited States Board of Tax Appeals · 1934
- Piggly Wiggly Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
- Douglas County Light & Water Co. v. CommissionerUnited States Board of Tax Appeals · 1929
- Eastern Steamship Lines v. CommissionerUnited States Board of Tax Appeals · 1929
- Piggly Wiggly Corp. v. CommissionerUnited States Board of Tax Appeals · 1933
1 more not listed; retrieve them via the Exa API.