Bailey v. Commissioner of Internal Revenue

SIBLEY, Circuit Judge.

The taxpayers, Wm. J. Bailey and wife, have a community estate under Texas law. The husband as manager, in whose name the transactions were conducted, need alone be mentioned hereafter. He returned for income taxation in the year 1933 a profitable sale of land which had on March 8, 1924, been consummated by his making a deed and taking four negotiable notes for a principal of $15,500 each, due in four, five, six, and seven years, with interest from date at seven per cent payable annually. The buyer was Mount Olivet Cemetery Company, a corporation wholly controlled and…