No Business Bad Debt Nor Partnership Loss Allowed to Taxpayer
The taxpayer in the case of Scheurer v. Commissioner, TC Memo 2017-36 claimed that he either had a large business bad debt loss or a partnership loss related to funds that he stated he had advanced to a business being operating by a friend of his. Unfortunately for Mr. Scheurer, the Tax Court did not accept either claim.
Mr. Scheurer had a friend, Kevin Zinn, who was planning to start a robo-call operation, marketing his company’s services to individuals with high credit card debt. For a fee, the organization (Continental Financial Services, referred to as CFS) would contact the individual’s bank and attempt to negotiate a lower interest rate. If a prospect agreed to hire CFS, the prospect would be charged an upfront fee that would be charged to the prospect’s credit card,
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