Holloway v. Commissioner
United States Tax Court
The decedent, a resident of California, was assisted by his wife in starting a fertilizer business. They started with no capital. She signed notes with him to borrow money and contributed some services, in the earlier stages. They agreed orally that they would share equally. Later a corporation was formed and the stock was issued in the name of the decedent for assets accumulated by decedent and his wife. A gift of most of the stock was soon thereafter made.
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The decedent, a resident of California, was assisted by his wife in starting a fertilizer business. They started with no capital. She signed notes with him to borrow money and contributed some services, in the earlier stages. They agreed orally that they would share equally. Later a corporation was formed and the stock was issued in the name of the decedent for assets accumulated by decedent and his wife. A gift of most of the stock was soon thereafter made. Held, on the facts, the gift was not to the extent of one-half made by the wife, one-half of the stock not being received by her as…
1Opinion of the Court
OPINION.
Disney, Judge:
Petitioner and respondent agree that the question in this case is controlled by the application of section 1000 (d) of the Internal Revenue Code.1 The only point on which they disagree is whether any portion of the property which was subject to the gifts in question was received as compensation for personal services actually rendered by the wife. The respondent contends that the question is purely one of fact and that the petitioner has the burden of showing to what extent the personal services rendered by his wife contributed to the acquisition of the property in…
2Cited by2 opinions
- Holloway v. CommissionerCourt of Appeals for the Ninth Circuit · 1949
- Holloway v. CommissionerUnited States Tax Court · 1948