Maynard Hospital, Inc. v. Commissioner
United States Tax Court
Maynard, a hospital, obtained in 1934 an exemption from Federal income tax as a charitable organization. In 1940 it transferred its pharmacy to its stockholder-trustees who operated the pharmacy for profit, selling certain drugs to Maynard for at least 10 percent in excess of the amount for which Maynard could have bought the drugs elsewhere. In the midfifties Maynard commenced paying salaries to certain of its stockholder-trustees.
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Maynard, a hospital, obtained in 1934 an exemption from Federal income tax as a charitable organization. In 1940 it transferred its pharmacy to its stockholder-trustees who operated the pharmacy for profit, selling certain drugs to Maynard for at least 10 percent in excess of the amount for which Maynard could have bought the drugs elsewhere. In the midfifties Maynard commenced paying salaries to certain of its stockholder-trustees. Maynard's strictly charitable services were less than 1 percent of the amount of its charged-for-services although it never turned down an emergency case because…
1Opinion of the Court
Maynard Hospital, Inc., et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Maynard Hospital, Inc. v. Commissioner
Docket Nos. 4685-65, 3141-64, 3295-64, 3306-64, 3313-64, 378-65, 4814-65, 4684-65, 4686-65, 4687-65, 4688-65, 4689-65, 4690-65
United States Tax Court
52 T.C. 1006; 1969 U.S. Tax Ct. LEXIS 53;
September 25, 1969, Filed
Decisions will be entered under Rule 50.
Maynard, a hospital, obtained in 1934 an exemption from Federal income tax as a charitable organization. In 1940 it transferred its pharmacy to its stockholder-trustees who operated the pharmacy for profit,…
2Cases cited12 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Helvering v. BlissSupreme Court of the United States · 1934
- Ciaio v. CommissionerUnited States Tax Court · 1967
- Estate of Scharf v. CommissionerUnited States Tax Court · 1962
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