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Business Versus Nonbusiness Bad Debts: Dagres v. Commissioner Presents New Variations on an Old Theme  


Author:  Erik M.  Jensen.


Source: Volume 29, Number 02, Winter 2012 , pp.73-82(10)




Journal of Taxation of Investments

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Abstract: 

In Dagres v. Commissioner , decided in March 2011, the Tax Court considered the distinction between business bad debts and nonbusiness bad debts. This article discusses the particulars of Dagres , which presented some unusual issues, and describes more generally why the distinction matters to investors and how we are supposed to tell the two categories of debt apart.

Keywords: IRC Sec. 166, dominant motivation, Whipple v. Commissioner, proximity, United States v. Generes, chain of attribution

Affiliations:  1: Journal Editor-in-Chief and Case Western Reserve University School of Law.

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