Business vs Non-Business Bad Debts: Dagres vs Commissioner Presents New Variations on an Old Theme
Posted: 3 Nov 2011 Last revised: 25 Jan 2012
Date Written: October 31, 2011
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 it describes more generally why the distinction matters to investors and how we are supposed to tell the two categories of debt apart.
Keywords: Dagres v. Commissioner, Tax Court decision, business bad debt, nonbusiness bad debt, investments
JEL Classification: K34
Suggested Citation: Suggested Citation