From our private database of 28,700+ case briefs...
Hardy v. Commissioner
United States Tax Court
TC Memo 2017-16 (2017)
Dr. Stephen P. Hardy (plaintiff) was a plastic surgeon. Hardy held a minority interest in Missoula Bone & Joint Surgery Center, LLC (the Center), a surgery center that rented its facilities. Patients were charged a facility fee to use the Center. The Center distributed its revenue from its facility fees to its shareholders. Hardy occasionally performed surgeries at the Center but was paid directly by patients, not by the Center, and had no management responsibilities or decision-making powers. In 2008 Hardy began reporting his income from the Center as passive after previously classifying it as nonpassive. Despite the earlier classification, Hardy had never grouped his activity at the Center with his activity as a plastic surgeon. The Commissioner of Internal Revenue (the Commissioner) (defendant) determined a deficiency in Hardy’s taxes after reclassifying his income from the Center as nonpassive. The Commissioner also argued that under § 469 of the Internal Revenue Code, Hardy’s activity at the Center should have been grouped with his activity as a plastic surgeon to form one economic unit. Hardy petitioned the United States Tax Court for a redetermination.
Rule of Law
Holding and Reasoning (Buch, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 546,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 546,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 28,700 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.