Bercy v. Commissioner, T.C. Memo. 2019-118: Married Couple Entitled to Code Sec. 166 Bad Debt Deduction

In Bercy v. Commissioner, the Tax Court held that a married couple was entitled to a Code Sec. 166 bad debt deduction.  The deduction was connected to a bona fide loan the deceased husband made to an LLC. Among other things, the Tax Court found the husband was in a distinct trade or business of lending money, and therefore, the loan was a valid Code Sec. 166 business debt.   

To see full opinion, click Bercy v. Commissioner, T.C. Memo. 2019-118: Married Couple Entitled to Code Sec. 166 Bad Debt Deduction.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.