Foss v. Commissioner’s Empirical Analysis

Citation profile

32 federal appellate · 1 district · 3 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 52 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““In the prevailing opinion of the Board it was said that the taxpayer ‘merely received income from investments, and this is not a trade or business.’ While we do not say that the taxpayer might not carry on a business through an agent, it was not shown here that enough was done either by the taxpayer or her agents to constitute the carrying on of a business. To be sure, Mr. Weiller testified that he ‘changed investments continually, substituting and changing, and reinvesting the income,’ but it is not apparent from that statement to what extent there was activity in buying or selling securities or how far the taxpayer was other than a passive recipient of income or a mere investor either in her own capacity or through her agent. We think it would not be enough to secure or to attempt to secure income or capital stability by conversions of bonds into stock or vice versa, or by otherwise safeguarding the taxpayer’s invest ments. To do ‘only what is necessary from, an investment point of view’ was said by the Circuit Court of Appeals of the First Circuit to be insufficient to amount to engaging in business.’ (Citing cases.) We are not persuaded that the taxpayer was engaged directly or indirectly in carrying on a business. (Citing cases.) The activities of the taxpayer’s brother as to her investments and the employment for personal convenience of a bookkeeper to record financial transactions, or of a bank to cut and collect coupons, did not, in our opinion, amount to the carryin”

   1 later decision quote this exact passage · from the majority
   e.g. District of Columbia v. Brady

2. ““A person of property, who devotes his time to the active management of it and also to active participation in the management of the companies in which his property is invested, and who maintains an office for that purpose where he spends a substantial part of his time, is carrying on business within the meaning of this statute. If Foss had employed somebody else to look after his affairs, that person would certainly have been engaged in business; and we think that Foss, in attending to his affairs himself, was equally engaged in business. * * The maintenance of an office for this purpose, though not conclusive, is significant.””

   1 later decision quote this exact passage · from the majority
   e.g. District of Columbia v. Brady

3. “§ 23. Deductions from gross income. In computing net income there shall be allowed as deductions: "(a) Expenses. "(1) Trade or business expenses. "(A) In general. All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered; traveling expenses (including the entire amount expended for meals and lodging) while away from home in the pursuit of a trade or business; * * *.”

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