Burke

This appeal is from a decision of the United States Board of Tax Appeals, declaring deficiencies in the income taxes of the respondents and cross-petitioners, hereinafter called the taxpayers, for the calendar year 1924 of $969.96, and for the period between January 1, 1925, to December 4, 1925, of $777.87.

The question presented for determination here is whether the income from the Empire Building, in Seattle, Wash., was the separate property of Thomas Burke or the community income of Burke and his wife.

The material facts, which are not disputed, were found by the Board to be as follows :

In 1878, Burke, then a single man, purchased at sheriff’s sale a lot in Seattle. At that time Burke had but little money, and was preparing to be married in the near future. His fiancee gave him $500 to apply-on the purchase of the property. With this fund, and with $800 borrowed from a banker, he paid the purchase price, of $1,250. The loan of $800 from the banker was paid off by Burke in monthly installments of $20 each. :

In 1879 Burke and his fiancee were married at Seattle, where they continued to reside until the marital relation was terminated by Burke’s death on December 4, 1925. At…