Fischer v. Commissioner

Petitioner in 1902 started a business which he operated as a sole proprietor until January 1, 1939. He had two sons, born in 1905 and 1909, respectively. When each son became 16 he commenced working in the business during vacations without compensation. Upon graduation from college each son then worked full time in the business, with the idea of learning all of its phases. Each was paid a small compensation at first, which in 1934 was increased to include 10 percent of the profits, and in 1935 was again increased to include 33 1/3 percent of the profits. During the years 1936, 1937, and 1938…