Jack Starr v. Commissioner of Internal Revenue, Samuel M. Starr v. Commissioner of Internal Revenue

ENOCH, Circuit Judge.

Jack and Samuel M. Starr have each appealed from decisions of the Tax Court of the United States involving deficiencies in income tax for 1943 and 1944. Their two cases were consolidated for trial.

Four issues are involved.

I

The two taxpayers and their brother Joseph were partners in the Starr Pen Company, which engaged in the wholesale selling of fountain pens and fountain pen and pencil sets. Joseph Starr, who had a 70% interest in the partnership, ran the business and was in charge of sales.

In 1943 fountain pens were in short supply. Joseph made sales at an invoice price…