NJ Justices Nix Tax Deduction For Bad Nonbusiness Loan

Law360, New York (August 14, 2013, 1:10 PM EDT) -- The New Jersey Supreme Court on Tuesday held that worthless nonbusiness debt owed to a taxpayer was not deductible under the state's Gross Income Tax Act, leaving the plaintiffs with a $2 million tax bill because of the improper deduction.

Justice Anne M. Patterson wrote the court's unanimous opinion, affirming an appellate court judgment that biotechnology executive Harlan Waksal and his wife Carol Waksal would not be able to deduct a nonbusiness loss against their New Jersey gross income, even though they were permitted to report...
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