Royce W. Brown and Patty L. Brown v. Commissioner of Internal Revenue

HILL, Circuit Judge.

This is an appeal from a decision of the Tax Court of the United States 1 wherein that court upheld tax deficiencies in the amount of $19,405.46 assessed against taxpayer for the taxable year 1963.

Petitioners-appellants are husband and wife. Patty L. Brown executed the 1963 joint Federal Income Tax Return involved, as wife of Royce W. Brown, but took no active part in the business involved. We will be speaking of Royce W. Brown as taxpayer hereafter. Taxpayer’s original business was home building. Brown would purchase single lots from land developers and construct homes…