Davis v. Commissioner
United States Board of Tax Appeals
1. Held, that Max Thomas Davis was not entitled to a deduction of $2,000 for 1936 as a bad debt. 2. In 1937 the Government was claiming that Max Thomas Davis and the M. T. Davis Co. owed certain amounts of additional income taxes, penalties, and interest for certain prior years and Max Thomas Davis was indicted in connection therewith.
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1. Held, that Max Thomas Davis was not entitled to a deduction of $2,000 for 1936 as a bad debt. 2. In 1937 the Government was claiming that Max Thomas Davis and the M. T. Davis Co. owed certain amounts of additional income taxes, penalties, and interest for certain prior years and Max Thomas Davis was indicted in connection therewith. As a part of an offer in compromise which was accepted, Davis and the corporation agreed to and did pay all the taxes, penalties, and interest, totaling $104,131.96, claimed by the Government to be due. Held, that of said amount the portion attributed to…
1Opinion of the Court
*669OPINION.
TuRNer:
Davis contends that he is entitled to a deduction for 1936 of $2,000 as a debt due from Holmes to him, which debt he ascertained to be worthless and charged off in that year. The respondent claims that the payment to Holmes did not constitute a loan but represented money advanced to him for use in a stock venture in which Holmes and Davis were to share the profits and that the transaction was not a loan by Davis to Holmes. There is also some argument that on the evidence the advance was made not by Davis but by the M. T. Davis Co.
In our opinion, the evidence definitely shows…
2Cases cited2 opinions
- Insurance Co. v. DutcherSupreme Court of the United States · 1877
- United States v. Bertelsen & Petersen Engineering Co.Supreme Court of the United States · 1939
3Cited by11 opinions
- Robbins Tire & Rubber Co. v. CommissionerUnited States Tax Court · 1969
- Brink v. CommissionerUnited States Tax Court · 1962
- Lustig v. United StatesUnited States Court of Claims · 1956
- Eagle Asbestos & Packing Co., Inc. v. The United StatesUnited States Court of Claims · 1965
- J. W. Sefton, Jr. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
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