Dorminey v. Commissioner
United States Tax Court
1. During the taxable year petitioner was engaged in the produce business. He was a major shareholder in a corporation formed to bring bananas to this country. In his produce business, petitioner had a market for two carloads of bananas per week but could not obtain them because of economic conditions.
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1. During the taxable year petitioner was engaged in the produce business. He was a major shareholder in a corporation formed to bring bananas to this country. In his produce business, petitioner had a market for two carloads of bananas per week but could not obtain them because of economic conditions. When the corporation encountered financial difficulties petitioner made loans to the corporation which became worthless in 1947. Petitioner did receive a few carloads of bananas before the corporation became bankrupt. Petitioner deducted the amount of the loans as a business bad debt under…
1Opinion of the Court
OPINION.
Black, Judge:
Issue (a).
The question involved with regard to the loss on the advances of $15,792.55 to Navigation is whether or not the loss on the debt was incurred in trade or business. The petitioner contends it is a business bad debt deductible under section 23 (k) (1). The respondent contends it is a nonbusiness bad debt deductible under section 23 (k) (4) only. The applicable provisions of the Internal Eevenue Code of 1939 and Treasury Eegulations 111 are printed in the margin.2
Whether such bad debt loss was incurred in trade or business is essentially a question of fact. The…
2Cases cited6 opinions
- Cluett v. CommissionerUnited States Tax Court · 1947
- Maloney v. SpencerCourt of Appeals for the Ninth Circuit · 1949
- Bart v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Stokes' EstateCourt of Appeals for the Third Circuit · 1953
- Drachman v. CommissionerUnited States Tax Court · 1954
1 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Whipple v. CommissionerSupreme Court of the United States · 1963
- United States v. Sylvan M. Byck and Beatrice ByckCourt of Appeals for the Fifth Circuit · 1963
- Mance T. Spillers and Mary J. Spillers v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1969
- Byerlyte Corporation v. WilliamsDistrict Court, N.D. Ohio · 1959
- Hunsaker v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1980
17 more not listed; retrieve them via the Exa API.