# East Hennepin State Bank v. Commissioner

> United States Board of Tax Appeals · June 10, 1925 · 2 B.T.A. 24

URL: https://www.frixlaw.com/law-library/cases/4490648

## Case

- **Full name:** APPEAL OF EAST HENNEPIN STATE BANK.
- **Court:** United States Board of Tax Appeals
- **Decided:** June 10, 1925
- **Citations:** 2 B.T.A. 24; 1925 BTA LEXIS 2580
- **Precedential status:** Published
- **Opinion:** Opinion of the court
- **Judges:** Phillips
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/4490648

## Opinion text

Taxpayer appeals from the determination by the Commissioner of a deficiency in income tax for the year 1919 in the sum of $234.45, .and alleges that the Commissioner committed error in refusing to .allow the taxpayer to deduct, in computing its net income, the cost -of certain Bussian bonds claimed to have been ascertained to be worthless and charged off during the year 1919.
FINDINGS OF FACT.
The taxpayer is a Minnesota corporation doing a general banking ¡business at Minneapolis. Prior to 19TT the taxpayer purchased 10 Bussian 5y2 per cent bonds, due in 1926, of the par value ■of 1,000 rubles each, at a total cost of $3,064. In closing its books for the year 1919 it charged such bonds off on its books as worthless .and claimed said sum of $3,064 as a deduction for bad debts in preparing its return for 1919. No interest had been paid on such bonds •during 1918, 1919, or thereafter- At the close of the year 1919 these bonds were quoted among dealers at from $25 to $40 per 1,000-ruble liond.
DECISION.
The determination of the Commissioner is approved.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/4490648. Public record. Not legal advice.