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Burnet v. Huff, 288 U.S. 156 (1933)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Burnet v. Huff, 288 U.S. 156 (1933)
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Burnet v. Huff No. 58 Argued December 6, 1932 Decided February 6, 1933 288 U.S. 156
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE FIFTH CIRCUIT
Syllabus
1. Under the Revenue Act of 1918, to permit deduction of loss incurred "in trade or business" or "in any transaction entered into for profit," the loss must have been "sustained during the taxable year" -- it must be actual and present in that year; the mere existence of a liability, afterwards liquidated, is not enough. P. 159.
2. One of two partners, in 1920, embezzled money from a trust fund held by the firm, and paid it to the other (who was innocent) in discharge of the firm’s indebtedness to him. The other discovered the theft that year, and, in the year following, when the firm ceased business and was settled up, he restored to the fund the full amount, paying part with the firm’s remaining assets and the rest from his own pocket.
Held:
(1) That, under the Revenue Act of 1918, the amount so repaid was not deductible as a loss incurred by him in 1920. P. 161.
(2) The amount due him from his firm was not deductible under § 214(a)(7), Revenue Act of 1921, a a debt "ascertained to be worthless" during the year 1920, since the result of the firm’s business were not known prior to 1921, and no portion of the debt was previously ascertained to be worthless. P. 162.
56 F.2d 788 reversed.
Certiorari, 286 U.S. 541, to review the reversal of a decision of the Board of Tax Appeals, 20 B.T.A. 516, which sustained the Commissioner’s ruling against a deduction in an income tax return.
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Chicago: U.S. Supreme Court, "Syllabus," Burnet v. Huff, 288 U.S. 156 (1933) in 288 U.S. 156 288 U.S. 157. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=KZ64UBNPHN4VV5X.
MLA: U.S. Supreme Court. "Syllabus." Burnet v. Huff, 288 U.S. 156 (1933), in 288 U.S. 156, page 288 U.S. 157. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=KZ64UBNPHN4VV5X.
Harvard: U.S. Supreme Court, 'Syllabus' in Burnet v. Huff, 288 U.S. 156 (1933). cited in 1933, 288 U.S. 156, pp.288 U.S. 157. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=KZ64UBNPHN4VV5X.
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