Borge v. Commissioner

United States Court of Appeals for the Second Circuit

405 F.2d 673 (2d. Cir 1968)

Income must be taxable to whoever earns it and it cannot be assigned to another who did not earn it.

Relevant Facts

Borge (the plaintiff) produced and sold poultry for years and sustained considerable losses each year. The plaintiff also formed another entity, Danica Enterprises, Inc., and transferred the poultry business to the corporation. At the time, the plaintiff earned substantial income as an entertainer. He assigned to Danica the rights to his services as an entertainer for five years in exchange for a $50,000 yearly salary. Danica received entertainment profits far greater than the $50,000 it paid to the plaintiff. Because of this, the plaintiff was able to offset its losses from the poultry business against the entertainment profits it received. Additionally, Danica did not arrange any entertainment contracts nor did it provide any other assistance to the plaintiff in his entertainment business. During a five-year period, the plaintiff generated an average of $166,465 in income for Danica. Under 26 U.S.C. §482, the Commissioner (the defendant) designated $100,000 of Danica’s income as personal income to the plaintiff.

Issue

Get access to our database of over 17,000+ case briefs today. Access our issue statements for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Holding & Reasoning

Get access to our database of over 17,000+ case briefs today. Access holding & reasonings for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Concurrence

Get access to our database of over 17,000+ case briefs today. Access all available concurrences for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Dissent

Get access to our database of over 17,000+ case briefs today. Access all available dissents for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Last updated:

December 12, 2020

Judicial Opinion

Get access to our database of over 17,000 case briefs today. Our database of judicial opinions will be released soon, for free!

Procedural History

Get access to our database of over 17,000+ case briefs today. Access the entire procedural history for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Citations

405 F.2d 673 (2d. Cir 1968)