Robert H. Flato v. Commissioner of Internal Revenue

JONES, Circuit Judge.

In a proceeding before the Tax Court for ascertaining the correctness of the determinations made by the Commissioner of Internal Revenue of the Federal income tax liability of Robert H. Flato for the years 1945 and 1946, the facts were stipulated. Edwin F. Flato and Winnifred W. Flato, of Corpus Christi, Texas, were the parents of three sons, Franklin Flato, Frederick W. Flato, and Robert H. Flato. The parents owned as community property a three-fourths interest in three partnerships, Nueces Hardware Company, doing a retail business in the sale of hardware and appliances;…