Legal Opinion

Bank of Newberry v. Commissioner

United States Tax Court

Decided December 29, 1942No. Docket No. 108853Published

1. Income. -- Recovery on bad debt, deducted in prior year without reduction of petitioner's tax for such prior year, held, not taxable income.

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1. Income. -- Recovery on bad debt, deducted in prior year without reduction of petitioner's tax for such prior year, held, not taxable income. Citizens State Bank, 46 B.T.A. 964; sec. 22 (b), Internal Revenue Code, as amended by sec. 116 of the 1942 Act. 2. Deduction -- Bad Debt. -- Petitioner claimed a partially worthless bad debt deduction in a prior net loss year and in the subsequent taxable year, when the remaining balance of the debt became worthless, it claimed a deduction of not only such balance but also the amount deducted in the prior year. Held, that the amount properly deducted…

1Opinion of the Court

Bank of Newberry, Petitioner, v. Commissioner of Internal Revenue, Respondent

Bank of Newberry v. Commissioner

Docket No. 108853

United States Tax Court

1 T.C. 374; 1942 U.S. Tax Ct. LEXIS 7;

December 29, 1942, Promulgated

Decision will be entered under Rule 50.

1. Income. -- Recovery on bad debt, deducted in prior year without reduction of petitioner's tax for such prior year, held, not taxable income. Citizens State Bank, 46 B.T.A. 964; sec. 22 (b), Internal Revenue Code, as amended by sec. 116 of the 1942 Act.

2. Deduction -- Bad Debt. -- Petitioner claimed a partially worthless bad debt deduction…

2Cases cited6 opinions

  1. Motor Products Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
  2. Bank of Newberry v. CommissionerUnited States Tax Court · 1942
  3. Citizens State Bank v. CommissionerUnited States Board of Tax Appeals · 1942
  4. Ludlow Valve Mfg. Co. v. DureyCourt of Appeals for the Second Circuit · 1933
  5. First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1941

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