Holloway v. Commissioner
United States Tax Court
The decedent, a resident of California, was assisted by his wife in starting a fertilizer business. They started with no capital. She signed notes with him to borrow money and contributed some services, in the earlier stages. They agreed orally that they would share equally. Later a corporation was formed and the stock was issued in the name of the decedent for assets accumulated by decedent and his wife. A gift of most of the stock was soon thereafter made.
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The decedent, a resident of California, was assisted by his wife in starting a fertilizer business. They started with no capital. She signed notes with him to borrow money and contributed some services, in the earlier stages. They agreed orally that they would share equally. Later a corporation was formed and the stock was issued in the name of the decedent for assets accumulated by decedent and his wife. A gift of most of the stock was soon thereafter made. Held, on the facts, the gift was not to the extent of one-half made by the wife, one-half of the stock not being received by her as…
1Dissent
Johnson, /.,
dissenting: In my opinion the facts found disclose participation by the wife in decedent’s business to a degree which greatly exceeds “a wife’s usual duty” and supports a conclusion that her personal services were a substantial factor contributory to business success and were commensurate with decedent’s efforts in the early years. During those years decedent was employed, sometimes at a great distance from the gypsum deposits. During his absences the wife managed their private enterprise, and when he was present, she assisted in the details of operation and accounts. Because her…
2Cases cited1 opinion
- Neumann v. CommissionerUnited States Tax Court · 1947