Clay Drilling Co. v. Commissioner
United States Tax Court
Petitioner had certain accounts on its books for money advanced to two individuals who were its stockholders at the time the advancements were made.
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Petitioner had certain accounts on its books for money advanced to two individuals who were its stockholders at the time the advancements were made. In 1938 these stockholders sold their stock to two other individuals and at the time of sale it was agreed by all parties, including petitioner, that the two debtors would be released from personal liability to pay the accounts and that in the future a certain percentage of commissions due to these two debtors by petitioner on oil drilling contracts tendered by them to petitioner should be applied as credits to the accounts. Thereafter the…
1Opinion of the Court
OPINION.
Black, Judge:
We are not here concerned with the amounts which the Herschbachs owed the Continental Supply Co. or what petitioner owed the Supply Co. Considerable of the language of the agreement included in our findings of fact relates to that indebtedness, but it is in no way involved in this proceeding. We have hut one issue to decide here, and that is whether petitioner is entitled to a bad debt deduction in the taxable year aggregating $13,946.98. This aggregate is made up of an alleged account against John L. Herschbach of $11,563.67 and against E. Fred Herschbach of $2,383.31.…
2Cases cited1 opinion
- Riverview State Bank v. CommissionerUnited States Tax Court · 1943
3Cited by7 opinions
- Clark v. CommissionerUnited States Tax Court · 1952
- Feathers v. CommissionerUnited States Tax Court · 1947
- Drew v. CommissionerUnited States Tax Court · 1972
- Calso Co. v. CommissionerUnited States Tax Court · 1951
- Clark v. CommissionerUnited States Tax Court · 1952
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