Morgan v. Finnegan, Collector of Internal Revenue

SANBORN, Circuit Judge.

The plaintiff (appellant) and his wife, in 1943 and 1944, owned real estate in St. Louis, Missouri, as tenants by the entirety. All of this real estate, except one parcel, was rented to a company of which the plaintiff was the President. The wife received the rentals, reported them as her income in her separate federal income tax returns, and paid the taxes upon them. The Commissioner of Internal Revenue determined that one-half of the net income from the real estate was taxable to the plaintiff in each of the years in question. This resulted in a deficiency being…