Coombs v. Commissioner

*1024OPINION.

Muedocic:

The question to be determined is whether the petitioner is liable for tax upon the total net income derived from the J. Howard Coombs Lumber Co. in the years 1922, 1923, and 1924; or whether his wife properly reported one-half of such income as taxable to’her. We will assume, as is contended by the petitioner, that the laws of New Jersey do not preclude husband and wife from entering into a valid agreement of partnership.

It is alleged in the petition, and recited in the written partnership contract, that the petitioner and his wife entered into an oral agreement of…