Lusthaus v. Commissioner

The question in this case is the same as in Commissioner v. Tower, ante, p. 280. Here, too, the Commissioner made a deficiency assessment against the husband, petitioner, for purported partnership earnings reported in his wife’s return for 1940 and not reported by the petitioner. The Commissioner’s action was based on a determination, made after an investigation, that for income tax purposes no partnership existed between the petitioner and his wife. The following are the controlling facts: Petitioner has operated a furniture business since 1918 and since 1933 he has conducted a retail…