Davis v. Commissioner
United States Tax Court
Petitioner Edwin D. Davis, an orthopedic surgeon, organized two corporations for performing the X-ray services and physical therapy services formerly performed by his employees. He made gifts of 90 percent of the stock of each corporation to his three minor children. The corporations and shareholders properly elected to be taxed as small business corporations under subch.
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Petitioner Edwin D. Davis, an orthopedic surgeon, organized two corporations for performing the X-ray services and physical therapy services formerly performed by his employees. He made gifts of 90 percent of the stock of each corporation to his three minor children. The corporations and shareholders properly elected to be taxed as small business corporations under subch. S. The separate identities of the proprietorship medical practice and the corporations were maintained except for minor items. Held, the income earned by the corporations is not taxable to petitioner under sec. 61, I.R.C.…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in Federal income taxes as follows:
Year Docket No. Deficiency Petitioner
8665-71 $39,676.24 Edwin D. Davis_ C-* CO T — I
8666-71 36,167.78 Edwin D. Davis and Sandra W. Davis_ CD CO I — I
The cases have been consolidated for trial, briefs, and opinion. The parties have settled certain adjustments made in the statutory notices of deficiency. The issue remaining for decision is whether the taxable income of Clinical Orthopaedic X-Ray, Inc., and Medical Center Therapy, Inc., should be attributed to petitioner Edwin D. Davis, M.D., pursuant to…
2Cases cited15 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
10 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Jones v. CommissionerUnited States Tax Court · 1975
- GRIGORACI v. COMMISSIONERUnited States Tax Court · 2002
- Aagaard v. CommissionerUnited States Tax Court · 1985
- Bell v. CommissionerUnited States Tax Court · 1982
- Davis v. CommissionerUnited States Tax Court · 1975
2 more not listed; retrieve them via the Exa API.