United States District Court; N.D. California. K. Laurel Scheaf, Plaintiff v. United States of America, Defendant. No. C-82-0388-SW 9/8/83
MACMAHON, District Judge.
Opinion and Order
Plaintiff seeks a refund of income taxes, claiming that she is entitled to an interest deduction under 26 U. S. C. § 163(a) for a payment of $5,718.00 to Antigua Banking Limited on November 30, 1977. Plaintiff argues simply that the interest payment was made upon a genuine indebtedness. The government argues that no bona fide indebtedness existed between plaintiff and ABL and that the funds used for the interest payment belonged not to plaintiff but rather to a third party.
A bench trial was held on July 25-29, 1983. At the close of plaintiff's case, the government moved for a directed verdict. We reserved judgment, but we now grant the motion. In addition, we have considered the government's evidence and also grant judgment to the government upon all the evidence presented. Our findings of fact and conclusions of law, respectively, are divided into those based upon plaintiff's case and those based upon all the evidence. Any finding of fact deemed a conclusion of law hereby is concluded as a matter of law; any conclusion of law deemed a finding of fact hereby is found as a fact.