Dean v. Commissioner of Interna Revenue

GOODRICH, Circuit Judge.

This appeal from the Tax Court raises the question of the correctness of a claim for income tax against the taxpayer based on the rental value of property held in the name of a corporation of which the taxpayer and his wife are the sole shareholders. The facts are simple and undisputed.

The taxpayer and his wife are the sole shareholders in a personal holding company called the Nemours Corporation. The wife owns 80% of the stock. The real estate which is the subject matter of this controversy was owned by the taxpayer’s wife prior to her marriage. She and the taxpayer…