C. J. Langenfelder & Son, Inc. v. Commissioner
United States Tax Court
Petitioner contracted with the State of Maryland to dredge up specified quantities of oyster shells owned by the State and to redeposit them in designated oyster beds for use as "cultch" (i.e., a surface to which oyster larvae could attach and grow into mature oysters). Maryland paid petitioner a set price of $ 1.10 per cubic yard.
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Petitioner contracted with the State of Maryland to dredge up specified quantities of oyster shells owned by the State and to redeposit them in designated oyster beds for use as "cultch" (i.e., a surface to which oyster larvae could attach and grow into mature oysters). Maryland paid petitioner a set price of $ 1.10 per cubic yard. Concurrently, Maryland agreed, for a royalty of $ 0.90 per cubic yard, that petitioner could dredge an equal quantity of shells for sale to others as cultch and poulty feed. Held, as to shells dredged and redeposited for Maryland, petitioner had no economic…
1Opinion of the Court
Hall, Jvdge:
Respondent determined a $55,920.24 deficiency in petitioner’s income tax for its taxable year ending December 31,1968. Because of concessions made by the parties, the issues for decision are:
1. Whether petitioner had an economic interest in oyster shells which it dredged for the State of Maryland, so as to entitle it to a deduction for depletion under section 611(a).1
2. Whether petitioner is entitled to a percentage depletion rate under section 613(b) of 5 percent for 1968 and 1971,2 or of 15 percent for 1968 and 14 percent for 1971 with respect to the oyster shells it dredged and…
2Cases cited7 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Parsons v. SmithSupreme Court of the United States · 1959
- Matagorda Shell Co. v. CommissionerUnited States Tax Court · 1958
- W. D. Haden Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1963
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- C. J. Langenfelder & Son, Inc. v. CommissionerUnited States Tax Court · 1977