Denise Coal Co. v. Commissioner
United States Tax Court
1. Denise Coal Company, the owner and lessee of certain coal lands, entered into contracts with various strip miners whereby the strippers were to conduct strip-mining operations on Denise's property.
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1. Denise Coal Company, the owner and lessee of certain coal lands, entered into contracts with various strip miners whereby the strippers were to conduct strip-mining operations on Denise's property. The strippers' compensation was based in part on the market price of the coal; the contracts did not give the strippers an exclusive right to mine the coal until exhaustion but the contracts were only terminable for cause; the strippers used their own equipment; and they built some of the necessary roads and facilities. Held, that in determining Denise's "gross profit from the property" for…
1Opinion of the Court
OPINION.
Black, Judge:
The issues involved herein will be discussed in the same order as the findings of fact relating to them.
Issue 1. Economic Interest.
Denise owned or leased certain coal lands. It entered into contracts with various stripping contractors to mine the coal. It sold the coal which was mined by the strippers and, for the purpose of computing its percentage depletion deduction under sections 23 (m) and 114, I. It. C. 1939,4 it treated the gross proceeds from the sale of coal, less the amount that it paid as royalties to lessors, as its gross income from the property. The…
2Cases cited12 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Brown v. HelveringSupreme Court of the United States · 1934
- Security Flour Mills Co. v. CommissionerSupreme Court of the United States · 1944
7 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Cleveland Electric Illuminating Co. v. United StatesUnited States Court of Claims · 1985
- Denise Coal Co. v. CommissionerUnited States Tax Court · 1957