Belcher v. Lucas

Ninth Circuit

Belcher v. Lucas

39 F.2d 74, 8 A.F.T.R. (P-H) 10485, 1930 U.S. App. LEXIS 4028, 1930 U.S. Tax Cas. (CCH) 9254, 8 A.F.T.R. (RIA) 10

CourtCourt of Appeals for the Ninth Circuit

DecidedMarch 31, 1930

Docket5800

StatusPublished

Cited by4 cases

This text of 39 F.2d 74 (Belcher v. Lucas) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Belcher v. Lucas, 39 F.2d 74, 8 A.F.T.R. (P-H) 10485, 1930 U.S. App. LEXIS 4028, 1930 U.S. Tax Cas. (CCH) 9254, 8 A.F.T.R. (RIA) 10 (9th Cir. 1930).

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Opinion

*75 DIETRICH, Circuit Judge.

In this proceeding we are asked to review an order of the Board of Tax Appeals approving the action of the Commissioner of Internal Revenue in aggregating, for the purpose of computing the income tax, the personal earnings of petitioner and his wife, and charging the petitioner with the whole of the tax so computed. The taxes in question were for the calendar years 1922 and 1923, and at all times the petitioner and his wife were residents of California, and the earnings were for services rendered in California. It is therefore conceded that, in the absence of some agreement altering their status, the incomes of both husband and wife constituted property of the community, and were by. the Commissioner- correctly taxed. United States v. Robbins, 269 U. S. 315, 46 S. Ct. 148, 70 L. Ed. 285.

Reliance is had upon an oral agreement made prior to the marriage of petitioner and his wife, which occurred on December 5,1903, at Los Angeles, Cal., under which, to use the language of his brief, “it was understood that both would continue in business, that all earnings, income, and properties acquired by both during their married life would be owned by them fifty-fifty, and that they would be equal partners in all respects, equally owning and enjoying their earnings and acquisitions of property. * * * In accordance with this agreement, their properties, accumulations, earnings and incomes have continuously since date of marriage been combined in a common fund, from which all expenses of both have been paid, as evidenced by joint bank accounts created immediately after marriage where all salaries, earnings and profits from whatsoever source were deposited and against which account eaeh was authorized by written contract with the banking institution to draw.” Assuming that this statement by petitioner of the scope and nature of the agreement and what was done under it is correct, we are of the opinion that the view taken by the Commissioner and the Board of Tax Appeals was right. Admittedly, it is quite unimportant that the understanding originated before marriage, for, under the settled rule in California, a post-nuptial agreement of like character would be of equal efficacy. In every material respect, therefore, the ease is like Blair v. Roth (C. C. A.) 22 F.(2d) 932, and it is ruled by our decision therein. See, also, Lucas, Com’r v. Earl, 50 S. Ct. 241, 74 L. Ed.(United States Supreme Court Decision, March 17, 1930).

Affirmed.

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*75 DIETRICH, Circuit Judge.

In this proceeding we are asked to review an order of the Board of Tax Appeals approving the action of the Commissioner of Internal Revenue in aggregating, for the purpose of computing the income tax, the personal earnings of petitioner and his wife, and charging the petitioner with the whole of the tax so computed. The taxes in question were for the calendar years 1922 and 1923, and at all times the petitioner and his wife were residents of California, and the earnings were for services rendered in California. It is therefore conceded that, in the absence of some agreement altering their status, the incomes of both husband and wife constituted property of the community, and were by. the Commissioner- correctly taxed. United States v. Robbins, 269 U. S. 315, 46 S. Ct. 148, 70 L. Ed. 285.

Reliance is had upon an oral agreement made prior to the marriage of petitioner and his wife, which occurred on December 5,1903, at Los Angeles, Cal., under which, to use the language of his brief, “it was understood that both would continue in business, that all earnings, income, and properties acquired by both during their married life would be owned by them fifty-fifty, and that they would be equal partners in all respects, equally owning and enjoying their earnings and acquisitions of property. * * * In accordance with this agreement, their properties, accumulations, earnings and incomes have continuously since date of marriage been combined in a common fund, from which all expenses of both have been paid, as evidenced by joint bank accounts created immediately after marriage where all salaries, earnings and profits from whatsoever source were deposited and against which account eaeh was authorized by written contract with the banking institution to draw.” Assuming that this statement by petitioner of the scope and nature of the agreement and what was done under it is correct, we are of the opinion that the view taken by the Commissioner and the Board of Tax Appeals was right. Admittedly, it is quite unimportant that the understanding originated before marriage, for, under the settled rule in California, a post-nuptial agreement of like character would be of equal efficacy. In every material respect, therefore, the ease is like Blair v. Roth (C. C. A.) 22 F.(2d) 932, and it is ruled by our decision therein. See, also, Lucas, Com’r v. Earl, 50 S. Ct. 241, 74 L. Ed.(United States Supreme Court Decision, March 17, 1930).

Affirmed.

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Bluebook (online)

39 F.2d 74, 8 A.F.T.R. (P-H) 10485, 1930 U.S. App. LEXIS 4028, 1930 U.S. Tax Cas. (CCH) 9254, 8 A.F.T.R. (RIA) 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belcher-v-lucas-ca9-1930.

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