Gaudern v. Commissioner
United States Tax Court
In 1975, P owned and operated, as a sole proprietorship, a business of selling bowling supplies, both at wholesale and at retail, and sought to apply the maximum tax on earned income under sec. 1348, I.R.C. 1954, to the entire net profits from such business. Held, capital was a material income-producing factor in such business, and accordingly, only 30 percent of the net profits of such business constituted earned income under sec. 1348 in 1975.
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency of $17,663.79 in the petitioner’s Federal income tax for 1975. The sole issue for decision is whether capital was a material income-producing factor in the petitioner’s business of selling bowling supplies at wholesale and retail within the meaning of sections 911(b) and 1348 of the Internal Revenue Code of 1954,1 relating to the maximum tax on earned income.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The petitioner, Ronald L. Gaudern, maintained his legal residence in San Antonio, Tex., at the…
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Rousku v. CommissionerUnited States Tax Court · 1971
- Moore v. CommissionerUnited States Tax Court · 1979
- Bruno v. CommissionerUnited States Tax Court · 1978
- Fairfax Mut. Wood Products Co. v. CommissionerUnited States Tax Court · 1945
6 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- John M. Friedlander and Corrine Friedlander v. United StatesCourt of Appeals for the Ninth Circuit · 1983
- Van Kalker v. CommissionerUnited States Tax Court · 1983
- Wiley N. Hicks, Jr. And Roberta Hicks v. United StatesCourt of Appeals for the Fifth Circuit · 1986
- John E. Van Kalker Jr. And Carol Van Kalker v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1984
- Mark W. Curry, Jr., and Bertha G. Curry v. The United StatesCourt of Appeals for the Federal Circuit · 1986
18 more not listed; retrieve them via the Exa API.