Smith v. United States’s Empirical Analysis

Citation profile

7 federal appellate ·

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

1. ““1. In applying Section 122 of the Internal Revenue Code, as effective in 1941 to 1943, a -net operating loss to be available for carry-over or carry-back purposes must be one sustained as an incident to the ordinary and normal course of a trade or business regularly carried on by the taxpayer. “2. The interpretation of the Commissioner is that an isolated transaction involving the sale of building and' land," formerly necessary incidents to an operating business, cannot be included within the statutory section allowing net loss carry-over or carry-back for the reason that such sale for the purpose of terminating the manufacturing activity cannot reasonably be construed to come within the category of a transaction incurred in the ordinary and normal course of a trade or- business regularly carried on by the taxpayer. This interpretation is con7 sistent with the language and intent of the statutory section. “3. The plaintiff not being in the business of selling land and buildings cannot carry-back his loss sustained in 1943 and charge the same against the net operating profit derived in 1941.””

   1 later decision quote this exact passage · from the majority
   e.g. 111 F. Supp. 314 - Chicago Title & Trust Co. v. United States

2. ““XIII. With respect to the Deming Arms property the only business the taxpayer engaged in from the date of its acquisition until the date of its sale, in the year 1941, was that of operation and management for the production of rental income and the taxpayer’s business with respect to the loss sustained on this property was that of managing and operating income producing real estate. Her loss during 1941 resulted from the sale of an asset previously used in the business of managing and operating income producing property and the sale of same marked the termination of that activity. Immediately following the sale of the Deming Arms Apartments taxpayer’s rental income on other holdings was reduced to a nominal figure.””

   1 later decision quote this exact passage · from the majority
   e.g. 111 F. Supp. 314 - Chicago Title & Trust Co. v. United States

3. ““III. The loss arising from the sale of the Deming Arms Apartments by the plaintiff in 1941, was not a loss arising from the operation of a trade or business regularly carried on by the plaintiff taxpayer. A 'trade or business’ is that which occupies the time, attention and labor of a person for the purpose of a livelihood or profit. “IV. The loss arising from the sale of the Deming Arms Apartments by the plaintiff in 1941, was not deductible as a net operating loss deduction pursuant to Sections 122 and 23 (s) of the Internal Revenue Code, and such loss cannot be carried over to the years 1942 and 1943.””

   1 later decision quote this exact passage · from the majority
   e.g. 111 F. Supp. 314 - Chicago Title & Trust Co. v. United States