Glenn v. Commissioner
United States Tax Court
Held, that a cash consideration of $ 900,000 received by the petitioner upon the assignment of his interest in oil and gas property is not taxable as ordinary depletable income as representing an advance royalty or an amount received in anticipation of a production payment, but represents the selling price of all his interest in such property except certain reserved production payments, and is taxable as long-term capital gain.
1Opinion of the Court
Atkins, Judge:
The respondent determined a deficiency in income tax for the calendar year 1955 in the amount of $362,712.99. The issue for decision is whether, as contended by the petitioner Howard Glenn, an amount of $900,000 received by him in 1955 constituted selling price of his 98 percent working interest in the oil and gas underlying certain land owned by him and is therefore taxable to him as long-term capital gain, or whether, as contended by the respondent, it constituted ordinary income subject to a depletion allowance.
FINDINGS OF FACT.
Some of the facts are stipulated and are…
2Cases cited8 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Anderson v. HelveringSupreme Court of the United States · 1940
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Commissioner of Internal Revenue v. FlemingCourt of Appeals for the Fifth Circuit · 1936
3 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Brountas v. CommissionerUnited States Tax Court · 1979
- Day v. CommissionerUnited States Tax Court · 1970
- Crooks v. CommissionerUnited States Tax Court · 1989
- Watnick v. CommissionerUnited States Tax Court · 1988
- Brountas v. CommissionerUnited States Tax Court · 1979
4 more not listed; retrieve them via the Exa API.