Equinox Co. v. Commissioner

Board of Tax Appeals

Equinox Co. v. Commissioner

2 B.T.A. 466, 1925 BTA LEXIS 2419

CourtUnited States Board of Tax Appeals

DecidedSeptember 7, 1925

DocketDocket No. 3021.

StatusPublished

This text of 2 B.T.A. 466 (Equinox Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Equinox Co. v. Commissioner, 2 B.T.A. 466, 1925 BTA LEXIS 2419 (bta 1925).

Pincite

Opinion

[468]*468OPINION.

Morris:

The book value of the assets of the Equinox Spring Co. as of October 81, 1919, was $5,138.22, represented by cash, accounts receivable, inventories, machinery, and fixtures. The.principal liability was the debt of $15,100 to the taxpayer. There is no evidence in the record that these assets were not worth their book value or that the taxpayer would not be able to recover at least a part of the debt. During the 10 months immediately preceding the close of its fiscal year 1919 it recovered from the Equinox Spring Co. $5,244.49. We are therefore of the opinion that the debt was not ascertained to be worthless nor was it charged off in the fiscal year 1919. The lack of evidence as to the value of the assets of the debtor company during the taxpayer’s succeeding fiscal year forces us to conclude that the debt, although charged off, is not deductible for that year.

Aeundell net participating.

Free access — add to your briefcase to read the full text and ask questions with AI

[468]*468OPINION.

Morris:

The book value of the assets of the Equinox Spring Co. as of October 81, 1919, was $5,138.22, represented by cash, accounts receivable, inventories, machinery, and fixtures. The.principal liability was the debt of $15,100 to the taxpayer. There is no evidence in the record that these assets were not worth their book value or that the taxpayer would not be able to recover at least a part of the debt. During the 10 months immediately preceding the close of its fiscal year 1919 it recovered from the Equinox Spring Co. $5,244.49. We are therefore of the opinion that the debt was not ascertained to be worthless nor was it charged off in the fiscal year 1919. The lack of evidence as to the value of the assets of the debtor company during the taxpayer’s succeeding fiscal year forces us to conclude that the debt, although charged off, is not deductible for that year.

Aeundell net participating.

Cite This Page — Counsel Stack

Bluebook (online)

2 B.T.A. 466, 1925 BTA LEXIS 2419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equinox-co-v-commissioner-bta-1925.

Opinion

Related

Cite This Page — Counsel Stack