Joe Goldstein and Lillian Goldstein v. Commissioner of Internal Revenue

BARNES, Circuit Judge.

This case involves the assessment of a deficiency in federal income tax for the year 1953. Appellant 1 filed a joint income tax return for 1953, and received a notice of deficiency in the amount of $28,-404.13. Appellant thereupon filed a petition with the Tax Court for a redetermination of the deficiency under the provisions of Section 272(a) of the Internal Revenue Code of 1939, 26 U.S.G. § 272(a). The Tax Court 2 held that the $40,000.00 profit realized by appellant on the sale of real property to his family corporation, three weeks after he had purchased said…