F. Paul Duffy and Virginia H. Duffy v. United States

McCREE, Circuit Judge.

The government appeals from a judgment for taxpayers in an action to recover income taxes paid upon assessment of a deficiency by the Internal Revenue Service for the calendar years 1963 to 1966. The facts were stipulated and the case was submitted on cross-motions for summary judgment. The district court’s opinion is reported at 343 F.Supp. 4 (S. D.Ohio 1972).

The taxpayers, F. Paul Duffy, a physician, and his wife, Virginia H. Duffy, purchased improved real estate in Cincinnati, Ohio on July 31, 1962, for use by Dr. Duffy in his medical practice. Shortly thereafter, on…