Holbrook v. Commissioner
United States Tax Court
Held, petitioners are not entitled to a percentage depletion deduction in 1970 with respect to income derived from coal mining under a nonexclusive and nontransferable license which was subject to termination without cause by giving the licensee 10 days' notice.
1Opinion of the Court
OPINION
Section 611(a) provides that in the case of mines there shall be permitted as a deduction in computing taxable income a reasonable allowance for depletion according to the peculiar conditions of each case. Section 613 provides that the depletion allowance in the case of coal shall be 10 percent of the gross income from the property (defined as the gross income from mining, sec. 613(c)), excluding amounts paid as royalties by the taxpayer in respect of the property. The theory of the deduction is that “extraction of minerals gradually exhausts the capital investment in the mineral…
2Cases cited14 opinions
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Lynch v. Alworth-Stephens Co.Supreme Court of the United States · 1925
- Parsons v. SmithSupreme Court of the United States · 1959
- Paragon Jewel Coal Co. v. CommissionerSupreme Court of the United States · 1965
- United States v. James C. And Helen M. Stallard, and Dewey H. And Geneva StallardCourt of Appeals for the Fourth Circuit · 1959
9 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Weaver v. CommissionerUnited States Tax Court · 1979
- Missouri River Sand Co. v. CommissionerUnited States Tax Court · 1984
- Holbrook v. CommissionerUnited States Tax Court · 1975
- Missouri River Sand Co. v. CommissionerUnited States Tax Court · 1984
- Somont Oil Co. v. CommissionerUnited States Tax Court · 1991
3 more not listed; retrieve them via the Exa API.