Douglas Bynum created a corporation and then operated eight businesses from that corporation:

a consulting engineering business,

two secretarial services businesses,

two beauty shops,

two tax preparation businesses, and

a steel fabrication business.

Mr. Bynum paid expenses on behalf of these operations and made loans to this corporation. The corporation went bankrupt without repaying the money it owed Mr. Bynum. He deducted this lost money as a bad debt on the 2000 joint tax return he filed with his wife, Shirley.

Unfortunately, he made ... Log in to view full article.