§1348 — Repealed. Pub. L. 97–34, title I, § 101(c)(1), Aug. 13, 1981, 95 Stat. 183]

32 cases·10 followed·5 distinguished·1 limited·1 overruled·15 cited—31% support

Statute Text — 26 U.S.C. §1348

[§ 1348. Repealed. Pub. L. 97–34, title I, § 101(c)(1), Aug. 13, 1981, 95 Stat. 183] Section, added Pub. L. 91–172, title VIII, § 804(a), Dec. 30, 1969, 83 Stat. 685; amended Pub. L. 93–406, title II, § 2005(c)(14), Sept. 2, 1974, 88 Stat. 992; Pub. L. 94–455, title III, § 302(a), Oct. 4, 1976, 90 Stat. 1554; Pub. L. 95–600, title IV, §§ 441(a), 442(a), title VII, § 701(x)(1), (2), Nov. 6, 1978, 92 Stat. 2878, 2920; Pub. L. 95–600, title IV, § 441(a), as amended Pub. L. 96–222, title I, § 104(a)(5)(B), Apr. 1, 1980, 94 Stat. 218, provided for a 50-percent maximum rate on personal service income. Statutory Notes and Related Subsidiaries Effective Date of RepealRepeal effective for taxable years beginning after Dec. 31, 1981, see section 101(f)(1) of Pub. L. 97–34, set out as an Effective Date of 1981 Amendment note under section 1 of this title. Transitional Rule in Case of Taxable Year Beginning Before Nov. 1, 1978, and Ending After Oct. 31, 1978Pub. L. 95–600, title IV, § 441(b)(2), Nov. 6, 1978, 92 Stat. 2878, as amended by Pub. L. 96–222, title I, § 104(a)(5)(A), Apr. 1, 1980, 94 Stat. 218, provided that in the case of a taxable year which began before Nov. 1, 1978, and ended after Oct. 31, 1978, the amount taken into account under subsec. (b)(2)(B) of section 1348 of this title by reason of section 57(a)(9) of this title be 50 percent of the lesser of the net capital gain for the taxable year or the net capital gain taking into account only gain or loss properly taken into account for the portion of the taxable year before Nov. 1, 1978.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.1348-1 Fifty-percent maximum tax on earned income
Treas. Reg. §Treas. Reg. §1.1348-2 Computation of the fifty-percent maximum tax on earned income
Treas. Reg. §Treas. Reg. §1.1348-2(a) Computation of tax for taxable years beginning after 1971.
Treas. Reg. §Treas. Reg. §1.1348-2(b) Computation of tax for taxable years beginning in 1971.
Treas. Reg. §Treas. Reg. §1.1348-2(c) Short taxable periods.
Treas. Reg. §Treas. Reg. §1.1348-2(d) Earned taxable income—(1) In general.
Treas. Reg. §Treas. Reg. §1.1348-2(i) §1.1348-2(i)
Treas. Reg. §Treas. Reg. §1.1348-2(v) The sum of the items of tax preference of an estate or trust shall, for purposes of this paragraph, be apportioned between the estate or trust and the beneficiary in the manner and to the extent provided by section 58(c)(1) and the regulations thereunder.
Treas. Reg. §Treas. Reg. §1.1348-3 Definitions
Treas. Reg. §Treas. Reg. §1.1348-3(a) Earned income—(1) In general.
Treas. Reg. §Treas. Reg. §1.1348-3(b) Deferred compensation—(1) In general.
Treas. Reg. §Treas. Reg. §1.1348-3(i) §1.1348-3(i)
Treas. Reg. §Treas. Reg. §1.1348-3(v) Any deferred compensation within the meaning of paragraph (b) of this section.

32 Citing Cases

Gary M. Schwarz & Marlee Schwarz, Petitioners T.C. Memo. 2025-122 · 2025

Memo LEXIS 346 (§ 1348, 1969 Code); Peterson Produce Co.

Brinks Gilson & Lione A Professional Corporation, Formerly Brinks Hofer Gilson & Lione A Professional Corporation, Petitioner · 2016

dividual as the person responsible for the services rendered." Id.. 8Sec. 1.1348-3(a)(3)(i), Income Tax Regs., limited to 30% the portion ofan individual's income from an unincorporated business that could be treated as earned income, for purposes ofsec. 1348, which (before its repeal in 1981) limited the rate oftax applicable to earned income. The 30% limit on the amount of business income that could be treated as earned income applied if"both personal services and capital are material income-p

Allyson Christina Briggs, Petitioner · 2004

at 685) added section 1348, which provided a 50-percent maximum rate on earned income, - 8 - effective for 1971 and thereafter.

Eldon R. & Susan M. Kenseth, Petitioner 114 T.C. No. 26 · 2000

nitive effects of historically high marginal rates when it enacted the 50 percent maximum tax on personal service income for tax years beginning after Dec. 31, 1970. Tax Reform Act of 1969, Pub. L. 91-172, sec. 804(a), 83 Stat. 487, 685 (codified as sec. 1348). However, such relief subsequently was considered no longer necessary when Congress reduced the highest marginal tax rate on all types of income to 50 percent, for taxable years beginning after Dec. 31, 1981. Economic Recovery Tax Act of 1

United States v. Blaszczak 56 F.4th 230 · Cir.

Thomas v. Commissioner 92 T.C. 206 · 1989

Van Kalker v. Commissioner 81 T.C. 91 · 1983

Kampel v. Commissioner 72 T.C. 827 · 1979

Peppiatt v. Commissioner 69 T.C. 848 · 1978

Holland v. Commissioner 70 T.C. 1046 · 1978

Bruno v. Commissioner 71 T.C. 191 · 1978

Estate of Wallace v. Commissioner 95 T.C. 525 · 1990

Murphy v. Commissioner 84 T.C. 1284 · 1985

Reinhardt v. Commissioner 85 T.C. 511 · 1985

Huff v. Commissioner 80 T.C. 804 · 1983

Doty v. Commissioner 81 T.C. 652 · 1983

Gaudern v. Commissioner 77 T.C. 1305 · 1981

Conforte v. Commissioner 74 T.C. 1160 · 1980

Moore v. Commissioner 71 T.C. 533 · 1979

Pension Benefit Guar v. United Steelworkers · Cir.

Pension Benefit Guaranty Corporation v. Republic Technologies International, Llc, United Steelworkers of America, Afl-Cio, Clc 386 F.3d 659 · Cir.

Jenkins v. Commissioner 102 T.C. 550 · 1994

Gord v. Commissioner 93 T.C. 103 · 1989

Edward D. Rollert Residuary Trust v. Commissioner 80 T.C. 619 · 1983

Kramer v. Commissioner 80 T.C. 768 · 1983

Boyer v. Commissioner 79 T.C. 143 · 1982

Home Interiors & Gifts, Inc. v. Commissioner 73 T.C. 1142 · 1980

Kennedy v. Commissioner 72 T.C. 793 · 1979

Carriage Square, Inc. v. Commissioner 69 T.C. 119 · 1977

Brewster v. Commissioner 55 T.C. 251 · 1970

Jeffrey Wiest v. Thomas Lynch 710 F.3d 121 · Cir.

Calderon-Serra v. Wilimington Trust Company 715 F.3d 14 · Cir.