Manning v. Commissioner
United States Tax Court
Petitioner married on June 30, 1939, and since that date has resided with his wife in California. On that date he had an established business, which he continued to operate through the taxable year 1941, and he had an ascertained separate property capital invested therein. The business was successful and profitable; the earnings and profits thereof being due in part to the capital invested, but primarily due to the efforts, ability, and skill of the petitioner.
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Petitioner married on June 30, 1939, and since that date has resided with his wife in California. On that date he had an established business, which he continued to operate through the taxable year 1941, and he had an ascertained separate property capital invested therein. The business was successful and profitable; the earnings and profits thereof being due in part to the capital invested, but primarily due to the efforts, ability, and skill of the petitioner. Held, that the income from the business should be apportioned between the capital invested and the petitioner's services, that the…
1Opinion of the Court
OPINION.
Black, Judge:
The method and manner of taxing income and the rates at which it is taxed are determined by the Federal income tax law. The ovmership of the income which is to be taxed is, however, determined under state law. Poe v. Seaborn, 282 U. S. 101. The applicable California statutes which determine the ownership of the income involved in this proceeding are printed in the margin.1
The parties are agreed as to the applicable statutes and they are also agreed as to the amount of net income of the business known as “Manning’s Big Ked Piano Shop,” -which was conducted as a sole…
2Cases cited10 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Pereira v. PereiraCalifornia Supreme Court · 1909
- Van Camp v. Van CampCalifornia Court of Appeal · 1921
- Estate of GoldCalifornia Supreme Court · 1915
- Estate of McCarthyCalifornia Court of Appeal · 1932
5 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Eaton v. CommissionerUnited States Tax Court · 1948
- Fowler v. CommissionerUnited States Tax Court · 1967
- Eaton v. CommissionerUnited States Tax Court · 1948
- Goold v. CommissionerUnited States Tax Court · 1949
- Manning v. CommissionerUnited States Tax Court · 1947