Tax Court: Hedge Fund Bad Debts are Business Deducitions

The Tax Court, in a reviewed opinion by Judge Gustafson, find that the bad debt deductions of a hedge fund manager/employee/investor were associated with his role as the fund manager and therefore were allowable trade or business deductions under Section 166.

Read the opinion here:
Dagres v. Commissioner, 136 T.C. No. 12 (2010).