DocketNumber： Docket No. 14460.
Citation Numbers： 12 B.T.A. 865, 1928 BTA LEXIS 3435
Judges： Littleton
Filed Date： 6/27/1928
Status： Precedential
Modified Date： 1/12/2023
*865 MEMORANDUM OPINION.
LITTLETON: The Commissioner determined a deficiency of $332.32 income tax for the calendar year 1920. The petitioner claims that *866 the Commissioner erred in adding to his income for the taxable year the amount of $1,971.55 as interest on bonds and mortgages for the reason that the amount of $1,971.55 belonged to and was income of his brother, H. W. Pond.
Petitioner is a resident of Cleveland Heights, Ohio. Prior to the taxable year petitioner and his brother, H. W. Pond, owned certain property which they sold and received therefor a mortgage, which, for convenience, was made to the Guardian Savings & Trust Co., as trustee, for the joint account of the two brothers, to pay income from said mortgage, less the charges and expenses incident to the execution thereof, one-half to the petitioner and one-half to his brother, H. W. Pond. The Guardian Savings & Trust Co. also held certain bonds belonging to the petitioner and his brother, the income from which was paid to them according to their interests. Petitioner and*3436 his brother each reported as income for 1920 his proportion of the interest received from the trustee and paid the tax thereon. Petitioner reported $1,542.68 from this source which was the amount belonging to him. The total interest from bonds and mortgage received by the petitioner and his brother amounted to $3,514.23. Petitioner's brother, H. W. Pond, reported his proportion of this interest. The Commissioner held that because the information certificate, Form 1099, filed with him by the Guardian Savings & Trust Co. showed the total interest as having been paid to the petitioner, his income should be increased accordingly. In this the Commissioner was in error.