Thomas v. Commissioner
United States Tax Court
Petitioner, as a participant in the Wise County Mining Program, claimed a deduction for "mining development costs," "operating management fees," and "professional fees." Held: Petitioner has failed to carry his burden of proving that the Wise County Mining Program was organized and operated with the primary and predominant objective of realizing an economic profit.
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Petitioner, as a participant in the Wise County Mining Program, claimed a deduction for "mining development costs," "operating management fees," and "professional fees." Held: Petitioner has failed to carry his burden of proving that the Wise County Mining Program was organized and operated with the primary and predominant objective of realizing an economic profit. Therefore, petitioner is not entitled to deduct under sec. 616(a), I.R.C. 1954, his allocable share of "mining development costs." Held, further, petitioner is not entitled to deduct his allocable share of "operating management…
1Opinion of the Court
Sterrett, Chief Judge:
By notice of deficiency dated September 25, 1981, respondent determined a deficiency of $37,411 in petitioners’ 1978 Federal income tax.1 The ultimate issue for decision is the amount, if any, that petitioners are entitled to deduct in 1978 for "mining development costs,” "operating management fees,” and "professional fees.”
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.
At the time they filed their petition herein, petitioners, who are…
2Cases cited17 opinions
- E.A. Brannen and Frances K. Brannen v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1984
- Brannen v. CommissionerUnited States Tax Court · 1982
- Siegel v. CommissionerUnited States Tax Court · 1982
- Flowers v. CommissionerUnited States Tax Court · 1983
- Surloff v. CommissionerUnited States Tax Court · 1983
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3Cited by124 opinions
- Rose v. CommissionerUnited States Tax Court · 1987
- Patin v. CommissionerUnited States Tax Court · 1987
- James P. Thomas and Mary Lou Thomas v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1986
- Capek v. CommissionerUnited States Tax Court · 1986
- Drobny v. CommissionerUnited States Tax Court · 1986
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