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
*314OPINION.
Opper:
Although the deduction sought by petitioner was claimed on his original return as a bad debt,1 and although on oral argument petitioner’s counsel took the position that he was not required to and would not elect whether to make the claim on that ground or as a loss not compensated for, it now appears that the sole contention made on behalf of petitioner is that the deduction is allowable as a losa The only statutory provision cited in petitioner’s brief as being applicable is section 23 (e) of the Revenue Act of 1934,2 dealing with losses. Since, however, in our opinion the same…
2Cases cited2 opinions
- Eckert v. BurnetSupreme Court of the United States · 1931
- Southern Railway Co. v. HusseySupreme Court of the United States · 1931
3Cited by23 opinions
- Crown v. CommissionerUnited States Tax Court · 1981
- Rubnitz v. CommissionerUnited States Tax Court · 1977
- Blitzer v. United StatesUnited States Court of Claims · 1982
- Heyman v. CommissionerUnited States Tax Court · 1978
- Schubel v. CommissionerUnited States Tax Court · 1981
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