Henson v. Commissioner
United States Tax Court
Petitioner on August 1, 1943, gave his wife a bakers supply business which he had been operating under the name of J. M. Henson Co. in Atlanta, Georgia. Mrs. Henson was a housewife, with no business experience, and she took no part in the operation of the business. The name of the business was not changed; it continued to operate as before, with petitioner as directing head.
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Petitioner on August 1, 1943, gave his wife a bakers supply business which he had been operating under the name of J. M. Henson Co. in Atlanta, Georgia. Mrs. Henson was a housewife, with no business experience, and she took no part in the operation of the business. The name of the business was not changed; it continued to operate as before, with petitioner as directing head. Held, the net income of the business for the period August 1 to December 31, 1943, is taxable to petitioner. Robert E. Werner, 7 T. C. 39, followed.
1Opinion of the Court
OPINION.
Black, Judge:
The question we have to decide in this proceeding is whether the profits of the business of J. M. Henson Co. from August 1,1943, to the end of the year are taxable to Mrs. Henson, as petitioner contends, or are taxable to petitioner, as respondent contends.
Although no inventory was taken at the time of the gift from petitioner to his wife and closing entries were not made at that time, the certified public accountant for the company computed the net income of the business from January 1 to August 1, 1943, and also the net income of the business from August 1, 1943, to the…
2Cases cited11 opinions
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- Werner v. CommissionerUnited States Tax Court · 1946
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