Thomas M. Robinson, District Director of Internal Revenue v. William G. Elliot, Thomas M. Robinson, District Director of Internal Revenue v. Thomas W. Elliot, and Evelyn W. Elliot

262 F.2d 383 59-1 USTC P 9129 Thomas M. ROBINSON, District Director of Internal Revenue, Appellant, v. William G. ELLIOT, Appellee. Thomas M. ROBINSON, District Director of Internal Revenue, Appellant, v. Thomas W. ELLIOT, and Evelyn W. Elliot, Appellees. Nos. 15983-15984. * United States Court of Appeals Ninth Circuit. Dec. 5, 1958. Charles K. Rice, Asst. Atty. Gen., Helen Buckley, Lee A. Jackson, Melva M. Graney, Fred E. Youngman, Attys., Dept. of Justice, Washington, D.C., Krest Cyr, U.S. Atty., Butte, Mont., for petitioner. Felt, Felt & Burnett, Jack W. Burnett, Billings, Mont., for respondent. Before HEALY, POPE and CHAMBERS, Circuit Judges. CHAMBERS, Circuit Judge. 1 The Buttrey Company, a Montana corporation, in November, 1955, received title to the Buffalo Block in Kalispell, Montana, by virtue of a warranty deed placed in escrow in February, 1946, by William G. Elliot, Thomas W. Elliot and Evelyn W. Elliot (hereafter 'taxpayers'). The three were and are citizens or Montana. The men are brothers. Thomas is the husband of Evelyn. 2 The basis for the deed in escrow was a 'Lease Agreement and Purchase Option' dated January 14, 1946, between Buttrey and the Elliots as…