Mr. Maloney was not a real estate dealer. But he managed and operated an office building in which he had an ownership interest. He provided services such as taking out the trash, installing and servicing water coolers, maintaining air conditioning, altering and repairing partitions, installing and repairing light fixtures, and maintaining a night elevator. All of these services were typical for the efficiency operation of a modern office building.

These were not in the nature of personal services to the occupants, such as would be the case if Mr. Maloney had provided hotel services, or use of parking spaces, storage spaces, or warehouse services or other services that are primarily for the occupants’ convenience, in contrast to services that are customarily furnished in connection with the operation of a modern office building.

I suppose it is a subtle difference. But such fine distinctions are the gossamer stuff of which law is often made.

At any rate, his income was characterized as real estate rental income, rather than wages or income from self-employment for social security purposes. If he had been a real estate dealer, I suppose the outcome may have been different. But in these circumstances, his income from the office building was considered investment income, for which social security credits are not granted.

Mr. Maloney called baloney and appealed the decision. But the federal district court upheld it.

See Maloney v. Celebrezze, 337 F.2d 231 (3rd Cir. 1964).

See also Social Security Ruling (SSR) 65-28.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.