United States v. Snow

223 F.2d 103 55-1 USTC P 9432 UNITED STATES of America and Calvin E. Wright, Collector of Internal Revenue for the District of Idaho, Appellants, v. John D. SNOW and Grace K. Snow, Husband and Wife, Appellees. No. 14129. United States Court of Appeals Ninth Circuit. May 3, 1955. H. Brian Holland, Asst. Atty. Gen., Louise Foster, Hilbert P. Zarky, Ellis N. Slack, Special Assts. to Atty. Gen., Sherman F. Furey, Jr., John T. Hawley, Asst. U.S. Atty., Boise, Idaho, for appellants. Elam & Burke, Boise, Idaho, for appellees. Before HEALY, BONE and POPE, Circuit Judges. BONE, Circuit Judge. 1 The appellees filed separate individual income tax returns with the Collector of Internal Revenue for the District of Idaho for the taxable year 1945. In these tax returns, appellees accounted for a community property net gain from the sale of one-fourth interest in a partnership. The entire receipt, minus the basis, was treated as a capital gain under Section 117 of the Internal Revenue Code, 26 U.S.C. § 117 . The Collector of Internal Revenue levied an additional tax assessment for the taxable year 1945 on the individual return of John D. Snow in the amount of $20,376.60, including…