Lehr v. Commissioner
United States Tax Court
A certain note held by petitioners' decedent constituted a capital asset and was sold to, rather than discounted at, a bank with the result that the loss sustained in the sale is deductible only as a capital loss.
1Opinion of the Court
OPINION.
Johnson, Judge:
The petitioners assigned as error in their petition the action of respondent in treating the note in the unpaid amount of $105,000 as a capital asset and the “loss” sustained in the “discounting” thereof as a capital loss. They contend upon brief that the charge of $12,471.58 by the bank represents discount and is deductible as an ordinary and necessary business or nonbusiness expense under the provisions of section 23 (a) (1) and (2) of the Code, or, in the alternative, as a business or nonbusiness loss or as a bad debt.
Section 23 (g) (1) of the Code provides that:…
2Cases cited17 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
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- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Burnet v. Commonwealth Improvement Co.Supreme Court of the United States · 1932
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3Cited by17 opinions
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