Munger v. Commissioner
United States Tax Court
1. Commission paid in 1944 by lessors to obtain five-year oil and gas leases on properties owned by lessors, held, capital expenditure and not ordinary and necessary business expense. 2. Lessors having taken "percentage depletion" in 1944 on bonus received from the lessee for oil and gas leases, held, not entitled to "cost depletion" in that year on commission paid to obtain the leases.
1Opinion of the Court
OPINION.
Johnson, Judge:
Respondent determined deficiencies in income tax for the calendar year 1944 in the following amounts:
Petitioner Deficiency L. S. Munger_ Marjorie Middleton. Bertha Munger_ $249.97 443.00 249.97
The proceedings were consolidated for hearing.
The questions at issue are:(1) Was a commission paid by a partnership in which petitioners owned a one-half interest, for securing oil and gas leases on property owned by the partnership, a capital expenditure or a business expense?(2) If the commission was a capital expenditure, is the partnership entitled to cost depletion on it over…
2Cases cited2 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Herring v. CommissionerSupreme Court of the United States · 1934
3Cited by17 opinions
- Cowden v. CommissionerUnited States Tax Court · 1959
- Upton v. CommissionerUnited States Tax Court · 1959
- Larsen v. CommissionerUnited States Tax Court · 1976
- Thielking v. CommissionerUnited States Tax Court · 1987
- Cockburn v. CommissionerUnited States Tax Court · 1951
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