Individual entitled to bad debt deduction having losses on loans in order to business
Individual entitled to bad debt deduction having losses on loans in order to business
Inside Owens, T.C. Memo. 2017 – 157 , the newest Taxation Court kept that an individual is entitled to an excellent bad debt deduction to own finance he made to a corporate one after that went broke just like the (1) the individual are active in the business away from financing currency throughout the many years in question; (2) this new fund have been bona fidedebt (even after often times being made to support the troubled company afloat); and you may (3) the debt turned into meaningless in advertised, even though the borrower didn’t file for bankruptcy through to the adopting the season. […]