Helvering v. American Dental Co.’s Empirical Analysis

Citation profile

137 federal appellate · 6 district · 28 state decisions

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 339 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The forgiveness was gratuitous, a release of something to the debtor for nothing, and sufficient to make the cancellation here gifts within the statute.””

   14 later decisions quote this exact passage · from the majority
   e.g. Shellabarger Grain Products Co. v. Commissioner · Edmont Hotel Co. v. Commissioner

2. “Article 49 of Regulations 69 which went into effect under the Revenue Act of 1918 substantially as it is quoted below and has so been continued reads:'Art. 49. Forgiveness of Indebtedness The cancellation and forgiveness of indebtedness may amount to a payment of income, to a gift, or to a capital transaction, dependent upon the circumstances. If, for example, an individual performs services for a creditor, who in consideration thereof cancels the debt, income to that amount is realized by the debtor as compensation for his services. If, however, a creditor merely desires to benefit a debtor and without consideration therefor cancels the debt, the amount of the debt is a gift from the creditor to the debtor and need not be included in the latter's gross income. If a shareholder in a corporation which is indebted to him gratuitously forgives the debt, the transaction amounts to a contribution to the capital of the corporation.' 79 "The Board found that the sole stockholder of the Auto Strop Safety Razor Company acted gratuitously in forgiving the debt, and, as there was evidence to support the finding, we accept it. It held correctly in accordance with the above regulation that by the transaction, being a contribution to its capital, the Auto Strop Safety Razor Company did not receive taxable income.”

   1 later decision quote this exact passage · from the majority
   e.g. Putoma Corp. v. Commissioner

3. ““ * * * One who in the peace and under the protection of the United States gainfully exercises his faculties of mind or body may be called on to share the gain with the public treasury. Section 213 of the Revenue Act of 1926 ( 26 U.S.C.A. § 954 ) here applicable includes in gross income to be taxed ‘gains, profits, and income derived from salaries, wages, or compensation for personal service * * * of whatever kind and in whatever form paid.’ It excludes property acquired by ‘gift, bequest, devise or inheritance.’ The intent is that all receipts in whatever form that come because of labor and service, whether payment could be compelled or not, shall be taxed as arising from labor. That only is a gift which is purely such, not intended as a return of value or made because of any intent to repay another what is his due, but bestowed only because of personal affection or regard or pity, or from general motives of philanthropy or charity. * * * ” (p. 723)”

   1 later decision quote this exact passage · from the majority
   e.g. Frank v. United States