Grossman v. Commissioner

*644opinion.

Lansdon:

The determination of petitioner’s claim depends, first, upon the question whether this debt had an existence in fact. No deduction can be allowed from his gross income, as a bad debt, unless the existence in fact of the debt is established. Appeal of Luke & Fleming, Inc., 1 B. T. A. 12.

The petitioner testified that the repayment of the alleged loan “was dependent on his [the son’s] success in life, sooner or later, and at the present time he has not succeeded so that he could not pay it.” He also testified that, since the failure of the Missouri enterprise, he had advanced…