Commissioner of Internal Revenue v. Claire Louise Williams, Harold G. Williams v. Commissioner of Internal Revenue

JONES, Circuit Judge.

We are here confronted with two questions of Federal income taxation; first, whether a realized profit from a sale was ordinary income or long-term capital gain; and second, whether the profit was realized by a partnership of husband and wife or by the husband alone.

Harold G. Williams and his wife, Claire Louise Williams resided at Jacksonville, Florida. He was Executive Vice President of Gulf Atlantic Transportation Company, owning less than five per cent, of its stock. In the latter part of 1945, Williams submitted a bid of $40,-000 for an uncompleted Navy tanker, the…