Fox v. Commissioner
United States Tax Court
As an accommodation to him, petitioner loaned securities to her husband, to be used as security for his personal brokerage account. When further security was required the petitioner declined to loan other securities, but signed a guaranty of the account. Later her husband died and his account was closed, leaving a substantial debit balance. His estate was insufficient to meet his obligations and petitioner was required to make good her guaranty.
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As an accommodation to him, petitioner loaned securities to her husband, to be used as security for his personal brokerage account. When further security was required the petitioner declined to loan other securities, but signed a guaranty of the account. Later her husband died and his account was closed, leaving a substantial debit balance. His estate was insufficient to meet his obligations and petitioner was required to make good her guaranty. In the taxable year she made a payment of $ 15,000 thereon. Held, on the facts, that in the taxable year and upon the payment of the $ 15,000…
1Opinion of the Court
OPINION.
TueneR, Judge:
As to the exact nature and character of petitioner’s claim, her petition is indefinite. Her allegations of error are, first, that the respondent erred in determining a deficiency against her for 1944 and, second, in adding back to net income $15,000 disallowed as a “bad debt.” In her allegations of fact she generally recited the circumstances of the loan of securities and of the guaranty of her husband’s account, the payments made by her under her guaranty prior to the taxable year, and the payment of the $15,000 here in question. She alleged that she “gave that guaranty…
2Cases cited8 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Eckert v. BurnetSupreme Court of the United States · 1931
- Campbell v. CommissionerUnited States Tax Court · 1948
- Watson v. CommissionerUnited States Tax Court · 1947
- Ingersoll v. Commissioner (A)United States Tax Court · 1946
3 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Sherman v. CommissionerUnited States Tax Court · 1952
- Stamos v. CommissionerUnited States Tax Court · 1954
- Martin v. CommissionerUnited States Tax Court · 1969
- Fox v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
- Aftergood v. CommissionerUnited States Tax Court · 1953
14 more not listed; retrieve them via the Exa API.