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Invasions Of The Community Property Income Tax Privileges, Franklin C. Latcham

Washington Law Review

For a period of over twenty years the eight community property states have enjoyed the privilege of dividing the total community income of the husband and wife between the spouses for income tax purposes and thus, in the higher income brackets at least, effecting a sizable reduction in tax liability. The basis for this benefit is found in the decisions of the United States Supreme Court, especially in the case of Poe v. Sanborn, wherein the court held that because under the local law of Washington a wife had a vested interest in one half of the community property she …