Hamilton v. Commissioner
United States Board of Tax Appeals
Held that a transaction between a husband and his wife involving a going concern and all the assets thereof was a sale to the husband by the wife; that an annual payment made to the wife by the husband was a payment of purchase price and not a division of profits; and that the entire income of the business is taxable to the husband.
1Opinion of the Court
*363OPINION.
Gkeen:
The petitioner herein has asserted two conflicting propositions : (1) That as a matter of law his wife was precluded by statute from conveying the assets of the business to him, and (2) that if such-conveyance be a valid one, the 25 per cent of the profits to be paid by him to his wife is deductible as compensation, or as her proportionate share of the net earnings of the partnership.
The petitioner’s counsel calls to our attention, and relies upon, the following provision of chapter 209 of the General Laws of Massachusetts :
*364Section 2. A married woman may make contracts, oral or…
2Cases cited3 opinions
- English v. EnglishMassachusetts Supreme Judicial Court · 1917
- Jacobs v. HeslerMassachusetts Supreme Judicial Court · 1873
- Clark v. PattersonMassachusetts Supreme Judicial Court · 1893
3Cited by4 opinions
- Peters v. CommissionerUnited States Board of Tax Appeals · 1933
- Riley v. CommissionerUnited States Board of Tax Appeals · 1933
- Shapiro v. CommissionerUnited States Board of Tax Appeals · 1934
- Hamilton v. CommissionerUnited States Board of Tax Appeals · 1927