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Individual qualified for worst financial obligation deduction for loss on financial loans to business

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Individual qualified for worst financial obligation deduction for loss on financial loans to business

In Owens, T.C. Memo. 2017 – 157 , the Tax judge held that an individual is entitled to a bad financial obligation deduction for debts the guy built to a company that consequently went broke because (1) the average person is involved in the business of financing revenue during the ages at problems; (2) the financing comprise bona fidedebt (despite every so often getting enabled to maintain the stressed company afloat); and (3) your debt became useless around said, even though the borrower would not seek bankruptcy relief before the next year.

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Owens’s lending businesses: William Owens got almost all stockholder of Owens economic class Inc. (OFG), a commercial lending company going by his father, and had served as OFG’s president for 20 years. OFG becomes most of the company by recommendations, and it and Owens liked a good reputation in the business. According to Owens’s estimates, during their opportunity at OFG, the business generated about $2.5 billion in financing (about $225 million that they had to foreclose on). Read the rest of this post

Nov 22, 2021

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