Marianne Crocker Elrick v. Commissioner of Internal Revenue

MacKINNON, Circuit Judge:

This appeal involves certain claimed deficiencies in federal income taxes for the taxable years 1965 and 1966 in the amounts of $17,267.63 and $11,829.28 respectively. The decision of the United States Tax Court in favor of taxpayerappellee 1 is under attack here on appeal by the Commissioner.

The facts of the case are undisputed. 2 On October 25, 1937, when taxpayer was four years old, her parents entered into a separation agreement which survived their divorce several months thereafter. Under the terms of the agreement, taxpayer’s father, on November 1, 1937, created…