Ferris v. Commissioner
United States Board of Tax Appeals
Where petitioner on a cash basis was liable as endorser on a note of many years standing held by a bank, and during the tax year the bank took petitioner's own note for an amount sufficient to discharge the original note, and, for that purpose credited the proceeds to petitioner's account with it, honoring his check drawn thereon and using the proceeds to discharge the original note, held, petitioner is not entitled to deduct the amount of the original note either as a bad…
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Where petitioner on a cash basis was liable as endorser on a note of many years standing held by a bank, and during the tax year the bank took petitioner's own note for an amount sufficient to discharge the original note, and, for that purpose credited the proceeds to petitioner's account with it, honoring his check drawn thereon and using the proceeds to discharge the original note, held, petitioner is not entitled to deduct the amount of the original note either as a bad debt or as a loss, no payment of the new note having been made.
1Opinion of the Court
T. HARVEY FERRIS AND ELIZABETH B. FERRIS, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Ferris v. Commissioner
Docket No. 88214.
United States Board of Tax Appeals
38 B.T.A. 312; 1938 BTA LEXIS 881;
August 11, 1938, Promulgated
Where petitioner on a cash basis was liable as endorser on a note of many years standing held by a bank, and during the tax year the bank took petitioner's own note for an amount sufficient to discharge the original note, and, for that purpose credited the proceeds to petitioner's account with it, honoring his check drawn thereon and using the proceeds to…
2Cases cited11 opinions
- Eckert v. BurnetSupreme Court of the United States · 1931
- Ferris v. CommissionerUnited States Board of Tax Appeals · 1938
- Weis v. CommissionerUnited States Board of Tax Appeals · 1928
- Thomason v. CommissionerUnited States Board of Tax Appeals · 1935
- Chickasha Cotton Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1930
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