Bernuth v. Commissioner
United States Tax Court
Held: Where petitioners did not have the right to negotiate separately for the drilling of the wells in question, the amount specified by contract as the price for the drilling of oil wells under turnkey contracts is not controlling with respect to the amount allowable as a deduction for intangible drilling expense. Since petitioners offered no other proof, petitioners did not overcome the presumptive correctness of the respondent's determination of a deficiency.
1Opinion of the Court
Charles M. Bernuth and Shirley P. Bernuth, Petitioners v. Commissioner of Internal Revenue, Respondent; Estate of Carl Von Bernuth, Deceased, Elizabeth Von Bernuth, Executrix, et al., and Elizabeth Von Bernuth, Surviving Wife, Petitioners v. Commissioner of Internal Revenue, Respondent
Bernuth v. Commissioner
Docket Nos. 4624-67, 4480-67
United States Tax Court
57 T.C. 225; 1971 U.S. Tax Ct. LEXIS 28; 41 Oil & Gas Rep. 443;
November 15, 1971, Filed
Decision will be entered under Rule 50 in Docket No. 4624-67.
Decision will be entered for the respondent in Docket No. 4480-67.
Held: Where petitioners…
Also in this document: Concurrence; Dissent · Scott; Dissent · Fay.
2Cases cited17 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Tait v. Western Maryland Railway Co.Supreme Court of the United States · 1933
- Amos v. CommissionerUnited States Tax Court · 1964
- United States v. Dakota-Montana Oil Co.Supreme Court of the United States · 1933
- Gene O. Clark and Faye Clark v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
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