Herbert v. Commissioner’s Empirical Analysis

Citation profile

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 3 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “In the instant case the real property consisted of one building rented in its entirety to one tenant who has occupied it since 1940, has complete charge of its operation, and is responsible for all repairs except as to outer walls and foundation. This property (the only real property owned by petitioner in the United States) was acquired by petitioner 50 years ago, not as the result of a business transaction entered into for profit (cf. Fackler v. Commissioner, 133 F. 2d 509 ) but by gift from petitioner’s father when she was a very young girl (see Grier v. United States, 120 F. Supp. 395 ). During the taxable years her only activities, in addition to the receipt of rentals, were the payment of taxes, mortgage principal and interest, and insurance premiums. See Evelyn M. L. Neill, supra. The record also shows that petitioner executed a lease of the property in 1940 and a modified renewal thereof in 1946, and made minor repairs to the walls and roof in 1954 and 1955. We are of the opinion that petitioner’s activities with regard to the real property here involved, which might be considered as “beyond the scope of mere ownership of real property, or the receipt of income from real property,” were sporadic rather than “continuous,” were irregular rather than “regular,” and were minimal rather than “considerable.” We therefore conclude that petitioner was “not engaged in trade or business in the United States” during the taxable years within the meaning of article IX (1) of the U”

   1 later decision quote this exact passage
   e.g. De Amodio v. Commissioner