¶1dissenting: I disagree with the result and reasoning on a number of issues including those mentioned below. The evidence seems sufficient to justify allowance of the bad debts as business bad debts. It is held that the 1945 distributions by Rumsey Mfg. of the “Donated Surplus Account” represented repayment of loans and, since that decided the only issue stated, it is error to go further and decide a point not raised in connection with those repayments. The retirement of the preferred stock of Rumsey Mfg. in 1945 was not shown to be within section 115 (g). I think “the remainder of the lump-sum payment” in the “Barrand and Williams purchase” should be allocated. Cohan v. Commissioner, 39 F. 2d 540.
24 T.C. 199
Towers v. Commissioner
Decided May 18, 1955
United States Tax Court · decided 1955-05-18
1. Petitioners engaged in a number of promotional business ventures up to 1939. Held: petitioners were not engaged in the business of organizing, promoting, managing, financing, and making loans to such corporation, and are entitled only to deductions for nonbusiness bad debts in accordance with the provisions of section 23 (k) (4) of the Internal Revenue Code of 1939. 2.
Relies on Cohan v. Commissioner
Good law ✅— No negative treatment on recordhow we know
Decisions will be entered under Rule 50 · Decided 1955-05-18
How this case has been cited
Cited by 72 later decisions — most recently August 2019 · most notably Millsap v. Commissioner (1966), Picker v. United States (1967)
7 federal appellate ·
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
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