Reading v. Commissioner
United States Tax Court
Petitioners claimed deductions from gross income as defined in the 1954 Code for their personal, living, and family expenditures. They assert that their true income from the sale of labor cannot be determined until their investment in that labor has been recovered. Held: The entire amount received from the sale of one's services constitutes income within the meaning of the Sixteenth Amendment. Sec. 262 is not unconstitutional.
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Petitioners claimed deductions from gross income as defined in the 1954 Code for their personal, living, and family expenditures. They assert that their true income from the sale of labor cannot be determined until their investment in that labor has been recovered. Held: The entire amount received from the sale of one's services constitutes income within the meaning of the Sixteenth Amendment. Sec. 262 is not unconstitutional. Held, further, petitioners have failed to advance any reason evidencing constitutional infirmity with secs. 1401 and 1402.
1Opinion of the Court
OPINION
Bruce, Judge:
Respondent determined a deficiency in the Federal income tax of petitioners for 1975 in the amount of $2,486.45. The issues for decision are whether section 262 and sections 1401 and 1402 are constitutional.1
This case was submitted fully stipulated. The stipulation of facts with attached exhibits is incorporated herein by this reference. The pertinent facts are summarized below.
Petitioners William H. and Beverly S. Reading are husband and wife. They filed a joint Federal income tax return for 1975 with the Director, Internal Revenue Service Center, Memphis, Tenn. At the…
2Cases cited23 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Steward MacHine Co. v. DavisSupreme Court of the United States · 1937
- United States v. GilmoreSupreme Court of the United States · 1963
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
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