Commissioner of Internal Revenue v. Larson

HANEY, Circuit Judge.

The question raised by the petition of the Commissioner of Internal Revenue is whether the income from community property in the hands of the executor of the husband’s estate, is taxable in its entirety to the estate, or whether one-half of such income is taxable to the surviving spouse.

Adelbert Larson, a resident of Washington, died testate on June 7, 1934, leaving surviving him his widow, the respondent. All property which the parties had upon his death was community property, the total value of which was $2,353,480.79 which included 210,974 shares of stock in Sunshine…