Newcombe

This is a petition to review a Tax Court decision holding that there is no deficiency in respect of the income or victory tax liability . of respondent (petitioner below) for 1943. The calendar year 1942 is also involved because of the forgiveness provisions of the Current Tax Payment Act of 1943, 26.U.S.C.A. Int.Rev.Acts p. 385.

■ The facts are not in dispute. The husband of the taxpayer, Warren Newcombe, was formerly married.to Hazel Newcombe. Hazel obtained an interlocutory decree of divorce from Warren in 1938. The decree incorporated a property settlement agreement previously executed by the parties. Under the agreement and the decree Warren was required to pay zh of his income to Hazel each month for a period of nine years.

In March of 1939 Warren Newcombe and the taxpayer were married. They reside in Los Angeles, California, and filed separate income tax returns for 1942 and 1943 on a community property basis. The income thus reported consisted almost entirely of salary received by Warren from his employment.

During the years 1942 and 1943 Warren, pursuant to the divorce decree, made payments to Hazel in the respective amounts of $18,954 and $21,060.60. In their income…