Eugene H. Walet, Jr. And Celia R. Walet v. Commissioner of Internal Revenue

Fifth Circuit

Eugene H. Walet, Jr. And Celia R. Walet v. Commissioner of Internal Revenue

272 F.2d 694, 4 A.F.T.R.2d (RIA) 5955, 1959 U.S. App. LEXIS 5328

Court of Appeals for the Fifth Circuit·Decided December 10, 1959·No. 17812_1·Published·Cited by 63 cases

Opinion

PER CURIAM.

This petition to review the decision of the Tax Court presents only questions of fact. We need not pass upon that Court’s doubts whether the activities of the petitioner in pursuing his own oil and gas interests were sufficient to constitute a business carried on by him because we must conclude that the Tax Court’s finding that there was insufficient proof that the expenditures claimed by the taxpayer, if made at all, were made for any other than personal purposes was not clearly erroneous. On this issue, as distinguished from whether there was evidence that petitioner was actually individually engaged in the oil business, we approve the opinion of the Tax Court. See 31 T.C. 461. We likewise adopt the *695 opinion of the Tax Court as relates to the treatment of deductions for depreciation and maintenance of the home bought by petitioner and which he permitted his divorced wife to occupy rent-free. The fact that he bought this house several years earlier with the intent of renting it to his divorced wife at an abnormally low rent does not result in its being property “held for the production of income,” in the tax years during which he received no income and expected none from it.

The decision is affirmed.

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PER CURIAM.

This petition to review the decision of the Tax Court presents only questions of fact. We need not pass upon that Court’s doubts whether the activities of the petitioner in pursuing his own oil and gas interests were sufficient to constitute a business carried on by him because we must conclude that the Tax Court’s finding that there was insufficient proof that the expenditures claimed by the taxpayer, if made at all, were made for any other than personal purposes was not clearly erroneous. On this issue, as distinguished from whether there was evidence that petitioner was actually individually engaged in the oil business, we approve the opinion of the Tax Court. See 31 T.C. 461. We likewise adopt the *695 opinion of the Tax Court as relates to the treatment of deductions for depreciation and maintenance of the home bought by petitioner and which he permitted his divorced wife to occupy rent-free. The fact that he bought this house several years earlier with the intent of renting it to his divorced wife at an abnormally low rent does not result in its being property “held for the production of income,” in the tax years during which he received no income and expected none from it.

The decision is affirmed.

Eugene H. Walet, Jr. And Celia R. Walet v. Commissioner of Internal Revenue, 272 F.2d 694, 4 A.F.T.R.2d (RIA) 5955, 1959 U.S. App. LEXIS 5328 (5th Cir. 1959).

Pincite

272 F.2d 694 (Eugene H. Walet, Jr. And Celia R. Walet v. Commissioner of Internal Revenue) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Opinion

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