Business Versus Nonbusiness Bad Debts: Dag res v. Commissioner Presents New Variations on an Old Theme

摘要

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 describes more generally why the distinction matters to investors and how we are supposed to tell the two categories of debt apart.