施工実績

Inside the Owens, T.C. Memo. 2017 – 157 , the brand new Taxation Court held you to an individual is permitted a good crappy debt deduction to payday used cars Morgan City LA own fund the guy built to a corporate you to definitely subsequently went bankrupt once the (1) the person is actually involved in the company out-of lending money during the recent years in question; (2) the newest financing was indeed bona fidedebt (even after some times becoming made to keep the battling providers afloat); and you may (3) the debt turned into worthless in stated, as the debtor don’t seek bankruptcy relief up until the following the 12 months.

Points

Owens’s credit company: William Owens was almost all shareholder off Owens Economic Classification Inc. (OFG), a commercial home loan company come by the his father, and had supported given that OFG’s president to have twenty years. OFG gets much of their organization from the ideas, therefore and Owens liked a good reputation in the industry. Based on Owens’s quotes, while in the his go out at OFG, the organization generated throughout the $dos.5 mil from inside the money (about $225 billion at which it needed to foreclose for the). And additionally their credit by way of OFG, as the about 1986, Owens got produced loads of loans regarding his or her own property, tend to as a result of his very own trust. However normally provide out of his own funds because an investment during the borrowers that have been also risky for OFG, however for just who he had a confidence and you may faith in their enterprize model. Owens provided papers appearing 89 financing which he generated ranging from 1999 and you will 2013. OFG’s professionals handled the brand new interaction, records, and you may legalities according to Owens’s signature loans similar to they performed of these produced truly courtesy OFG.

Initial money to debtor: David Lohrey ran a lodge washing team about San francisco Bay area. When you look at the 2003, immediately following some trouble Lohrey educated, he sought money from the a lender, and this considered the firm as well high-risk but introduced Lohrey to help you OFG.

Owens examined Lohrey’s company and its own possessions and you will computed (located in part on an assessment) which they was in fact really worth $20 billion. He calculated OFG you certainly will lend Lohrey $eight.5 million and you can wanted to actually lend to help you Lohrey an additional $dos.75 billion. Owens’s personal bank loan was in an excellent junior status in order to OFG’s however, provided a directly to take part in money above a specific endurance given that a lot more compensation. When Lohrey initial faced earnings shortages and you may decrease behind on repayments, Owens provided him additional time. Yet not, into the later 2005, Owens registered on an operating agreement and work out Owens’s faith a member out of Lohrey’s company having a thirty% display off funds, 99% share of losings, and you can 29% off resource.

A lot more finance, bankruptcy proceeding, bad debts: Lohrey next needed more cash to enhance their company. He was when you look at the transactions having a manager regarding sixteen healthcare facilities in order to control their washing features. Owens continued to trust for the Lohrey’s organization however, is actually incapable of provide the financing, and thus the guy known Lohrey to some other team, Vestin Mortgage, towards the more money. Vestin offered to loan the bucks but into position one Owens under their funds to help you Vestin, and therefore Owens agreed to perform.

Individual eligible to bad obligations deduction for losses for the money so you can team

Lohrey acquired a medical facility price, however, his providers continued to shed money. Immediately following experiencing then difficulties in 2008, Lohrey, for factors exterior his control, suddenly finished the business. During the time, Owens had outstanding a maximum of $16 million in loans to Lohrey, just who then filed to possess case of bankruptcy during the early 2009. Concerning the the bankruptcy proceeding case, Owens recorded a great “evidence of claim” – a statement saying that Owens got a directly to receive an effective potential commission on bankruptcy proceeding property.

Regarding the personal bankruptcy, Owens recovered not one of one’s currency he’d lent so you’re able to Lohrey. Into the guidance from their CPA, Owens reported an adverse financial obligation deduction around Sec. 166 getting 2008.