Deskins v. Commissioner
United States Tax Court
P disposed of coal by a contract entitled "Coal Lease" under which she will receive a tonnage royalty of $ 1 per ton of coal mined. However, P will not receive more than $ 4.3 million even if more than 4.3 million tons of coal are mined. Under the contract, P will receive an annual minimum royalty of $ 430,000 per year for 10 years. Any tonnage royalty P receives during a year is credited against the annual minimum royalty for the year.
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P disposed of coal by a contract entitled "Coal Lease" under which she will receive a tonnage royalty of $ 1 per ton of coal mined. However, P will not receive more than $ 4.3 million even if more than 4.3 million tons of coal are mined. Under the contract, P will receive an annual minimum royalty of $ 430,000 per year for 10 years. Any tonnage royalty P receives during a year is credited against the annual minimum royalty for the year. If the tonnage royalty due during a year exceeds the annual minimum royalty for the year, the excess is recouped against any annual minimum royalty paid in…
1Opinion of the Court
PARKER, Judge-.
Respondent determined a deficiency in petitioner’s 1980 Federal income taxes in the amount of $54,469.32. The issues for decision are (1) whether under the contract petitioner retained an economic interest in the coal so that payments she receives for the disposition of the coal qualify for capital gain treatment under sections 631(c)1 and 1231(b)(2), and (2) if section 631(c) does not apply, whether the payments she receives for the coal are subject to the imputed interest rules of section 483.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The…
2Cases cited25 opinions
- Neely v. CommissionerUnited States Tax Court · 1985
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
20 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Martin Ice Cream Co. v. Comm'rUnited States Tax Court · 1998
- Kean v. CommissionerUnited States Tax Court · 1988
- Cottle v. CommissionerUnited States Tax Court · 1987
- Estate of Christiansen v. Comm'rUnited States Tax Court · 2008
- Steiner v. CommissionerUnited States Tax Court · 1995
14 more not listed; retrieve them via the Exa API.