Cherry Basset Co. v. Commissioner
United States Board of Tax Appeals
Accounts charged off taxpayer's books as bad debts at December 31, 1920, were not then ascertained to be worthless and were not, therefore, proper deductions.
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Accounts charged off taxpayer's books as bad debts at December 31, 1920, were not then ascertained to be worthless and were not, therefore, proper deductions. Under section 234(a)(5) of the Revenue Act of 1918 no deduction may be taken for part of a debt charged off as worthless, Appeal of Steele Cotton Mill Co.,1 B.T.A. 299; and the entire account will not be allowed as a deduction by the Board because it was neither ascertained to be worthless nor charged off the taxpayer's books.
1Opinion of the Court
APPEAL OF CHERRY BASSET CO.
Cherry Basset Co. v. Commissioner
Docket No. 3212.
United States Board of Tax Appeals
2 B.T.A. 426; 1925 BTA LEXIS 2403;
September 7, 1925, Decided Submitted May 28, 1925.
Accounts charged off taxpayer's books as bad debts at December 31, 1920, were not then ascertained to be worthless and were not, therefore, proper deductions.
Under section 234(a)(5) of the Revenue Act of 1918 no deduction may be taken for part of a debt charged off as worthless, Appeal of Steele Cotton Mill Co.,1 B.T.A. 299; and the entire account will not be allowed as a deduction by the Board because…
2Cases cited2 opinions
- Steele Cotton Mill Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Appeal of Cherry Basset Co.United States Board of Tax Appeals · 1925