Battleson

E. W. Battleson and Caroline Battleson are husband and wife. For the year 1925 they made separate returns of income in which the receipts from certain partnerships were included. The Tax Commissioner concluded that the income from these various partnerships was the income of the husband and not of the wife, and deducted the items of income from her return, and assessed a deficiency against the husband based upon the inclusion in his account of these various partnership dividends. The husband appealed to the Board of Tax Appeals, which affirmed the action of the Commissioner, and he petitions this court for reversal of that order.

The facts are fully stated in the findings and opinion of the Board of Tax Appeals. 22 B. T. A. 455. We may briefly summarize them as follows:

The husband and wife engaged in business in Hamlet, N. D., in a copartnership consisting of themselves and petitioner’s brother, A. W. Battleson. The interest of the partners in this copartnership was in proportion to their investment in the capital as follows: A. W. Battleson, $3,000; Caroline Battleson, $5,000 ; E. W. Battleson, $5,000'. This business was sold in 1918. Under the law of North Dakota, the…