Mark B. Deitsch and Dorothy M. Deitsch v. Commissioner of Internal Revenue

ALLEN, Circuit Judge.

This case arises on petition to review a decision of the United States Tax Court sustaining the Commissioner in disallowing deductions in income tax made by petitioners, husband and wife, who filed a joint return in the year 1950, and in finding a deficiency of $2,707.98 for the same year. The facts are stipulated and are as follows:

In 1949 petitioner 1 was divorced from his former wife, Virginia Deitsch. A separation agreement which had been executed between the parties prior to the divorce was incorporated in the divorce decree. Petitioner agreed to convey the family…