William Herbert Brown and Mary F. Brown v. Commissioner of Internal Revenue

JOHNSEN, Circuit Judge.

This is a petition by a taxpayer, 1 to review a decision of the Tax Court, 25 T.C. 920.

The holding challenged is one that a payment of $3,105.24, made by the taxpayer to his two children in 1951, and a similar payment of $2600, made in 1952, were not entitled to be deducted by him from his gross income for those years, as interest, under 26 U.S.C.A. Int.Rev.Code of 1939, § 23(b).

The basis of the holding was a finding-from the evidence that-there existed no legal debt on the part of the taxpayer to his children, on which to predicate an interest obligation to them.

At the…