Webb v. Commissioner of Internal Revenue

SWAN, Circuit Judge.

For the year 1925 the petitioner and his wife filed a joint return on the basis of cash receipts and disbursements. As income of the wife, the Commissioner included profit resulting from transactions during the year in stocks carried in a margin account in her name with a brokerage firm, although no money was actually paid to her from the account in 1925. The Board ruled that such profit was properly included. The correctness of this ruling is the only question presented on appeal.

The brokerage margin account was opened in 1919 in Mrs. Webb’s name by Mr. Whitney, a friend…