James C. And Lillian Garner v. Commissioner of Internal Revenue

DeMOSS, Circuit Judge:

This is an appeal from a decision of the United States Tax Court entered March 3, 1992, determining that there is a deficiency in Garner’s income tax for the years 1981 and 1982 in the amounts of $315.00 and $336,720.00, respectively. 2 In its Memorandum of Findings of Fact and Opinion reported at 62 T.C.M. (CCH) 1260, 1991 WL 245205, the Tax Court held that (1) Garner’s repayment of a loan from Allied Merchants Bank (Bank) to Garner’s corporation, pursuant to a continuing guaranty, constituted a non-business bad debt, (2) Garner's repayment of a loan from Jerry Wendell…