Faurot v. Commissioner

Seventh Circuit

Faurot v. Commissioner

118 F.2d 348

CourtCourt of Appeals for the Seventh Circuit

DecidedJanuary 13, 1941

DocketNo. 7141

StatusPublished

This text of 118 F.2d 348 (Faurot v. Commissioner) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Faurot v. Commissioner, 118 F.2d 348 (7th Cir. 1941).

Pincite

Opinion

WOODWARD, District Judge.

The petitioners, husband and wife, living together, filed a joint return of their income for the calendar year 1935. The wife had sustained losses and the husband had realized gains on the sale of capital assets. The joint return reported a net capital loss, which was the difference between the wife’s losses and the husband’s gains. The Commissioner refused to allow the losses and gains of the petitioners to be thus pooled and computed in the aggregate. The Board of Tax Appeals sustained the Commissioner.

This case is controlled by the opinion of the Supreme Court in the cases of Helvering v. Janney, and Gaines v. Helvering, 311 U.S. 189, 61 S.Ct. 241, 244, 85 L.Ed. -, both cases decided December 9, 1940, and holding that by section 51 (b) of the Revenue Act of 1934, 48 Stat. 697, 26 U.S.C.A. Int.Rev.Acts, page 683, “ * * * Congress intended to provide for a tax on. the aggregate net income and that the losses of one spouse might be deducted from the gains of the other; and that this applied as well to deductions for capital losses as to other deductions.”

Accordingly, the decision of the Board of Tax Appeals is reversed and the case is remanded for further proceedings in conformity with this opinion.

Free access — add to your briefcase to read the full text and ask questions with AI

WOODWARD, District Judge.

The petitioners, husband and wife, living together, filed a joint return of their income for the calendar year 1935. The wife had sustained losses and the husband had realized gains on the sale of capital assets. The joint return reported a net capital loss, which was the difference between the wife’s losses and the husband’s gains. The Commissioner refused to allow the losses and gains of the petitioners to be thus pooled and computed in the aggregate. The Board of Tax Appeals sustained the Commissioner.

This case is controlled by the opinion of the Supreme Court in the cases of Helvering v. Janney, and Gaines v. Helvering, 311 U.S. 189, 61 S.Ct. 241, 244, 85 L.Ed. -, both cases decided December 9, 1940, and holding that by section 51 (b) of the Revenue Act of 1934, 48 Stat. 697, 26 U.S.C.A. Int.Rev.Acts, page 683, “ * * * Congress intended to provide for a tax on. the aggregate net income and that the losses of one spouse might be deducted from the gains of the other; and that this applied as well to deductions for capital losses as to other deductions.”

Accordingly, the decision of the Board of Tax Appeals is reversed and the case is remanded for further proceedings in conformity with this opinion.

Cite This Page — Counsel Stack

Bluebook (online)

118 F.2d 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/faurot-v-commissioner-ca7-1941.

Opinion

Related

Cite This Page — Counsel Stack