Jahn v. Commissioner
United States Tax Court
Petitioners owned a farm in Michigan, and on January 2, 1964, entered into an "agreement" with two individuals, Neyer and Andres, with respect to such property whereby the latter agreed to drill oil and gas wells thereon at their sole risk and expense and to market the production therefrom. Petitioners retained the rights to five-eighths of all production to be realized from the property and Neyer and Andres were to receive three-eighths of the proceeds.
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Petitioners owned a farm in Michigan, and on January 2, 1964, entered into an "agreement" with two individuals, Neyer and Andres, with respect to such property whereby the latter agreed to drill oil and gas wells thereon at their sole risk and expense and to market the production therefrom. Petitioners retained the rights to five-eighths of all production to be realized from the property and Neyer and Andres were to receive three-eighths of the proceeds. On the same day that petitioners signed the "agreement" and in conjunction therewith, petitioners received $ 50,000 from Andres. Petitioners…
1Opinion of the Court
Witi-iey, Judge:
Respondent determined deficiencies against petitioners for the taxable years 1964 and 1966 in the amounts of $3,164.56 and $21,141.16, respectively.
The principal issues presented for our consideration are (1) whether a $50,000 payment was the proceeds of a sale of a three-eighths interest in all the minerals lying beneath petitioners’ farm to Neyer and Andres or whether it represented a bonus or advance royalty under a lease, and (2) whether the petitioners received as part of a settlement in 1966 of their claims against Michigan Consolidated Gas Co. royalty payments amounting…
2Cases cited14 opinions
- 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
- Anderson v. HelveringSupreme Court of the United States · 1940
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
9 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Harold E. Jahn and Mary Jahn v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1973
- Jahn v. CommissionerUnited States Tax Court · 1972
- Jahn v. CommissionerCourt of Appeals for the Sixth Circuit · 1973