United Salt Corp. v. Commissioner
United States Tax Court
1. Held, petitioner's "mining" activity for depletion allowance purposes ended immediately after the rock salt passed through the screening process and, consequently, its "gross income from the property" is computed at that point. 2. The allocation of petitioner's general and selling expenses between its mining and nonmining activities is determined for the purpose of computing its "taxable income from the property" for purposes of applying the 50-percent limitation to…
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1. Held, petitioner's "mining" activity for depletion allowance purposes ended immediately after the rock salt passed through the screening process and, consequently, its "gross income from the property" is computed at that point. 2. The allocation of petitioner's general and selling expenses between its mining and nonmining activities is determined for the purpose of computing its "taxable income from the property" for purposes of applying the 50-percent limitation to depletion allowances under section 613(a), I.R.C. 1954.
1Opinion of the Court
Mulroney, Judge:
The respondent determined deficiences in petitioner’s income tax for the years 1953, 1954, and 1955 in the amounts of $9,678.76, $21,154.52, and $21,828.72, respectively. In an amendment to his answer the respondent claimed an increase of $2,029.07 in the deficiency for 1953, or a total deficiency for that year of $11,707.83.1 The issues are (1) the correct computation of gross income in the years before us from petitioner’s salt-mining operations for the purpose of computing the percentage depletion allowance; and (2) the amount of taxable income for the purpose of computing…
2Cases cited5 opinions
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
- United States v. Cannelton Sewer Pipe Co.Supreme Court of the United States · 1960
- Riddell v. Monolith Portland Cement Co.Supreme Court of the United States · 1963
- Tennessee Consol. Coal Co. v. CommissionerUnited States Tax Court · 1950
- Standard Realization Company v. United StatesCourt of Appeals for the Seventh Circuit · 1961
3Cited by17 opinions
- North Carolina Granite Corp. v. CommissionerUnited States Tax Court · 1964
- United States v. California Portland Cement Co.Court of Appeals for the Ninth Circuit · 1969
- United States v. Ideal Basic Industries, Inc.Court of Appeals for the Tenth Circuit · 1969
- General Portland Cement Co., Cross-Appellant v. United States of America, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1980
- Whitehall Cement Manufacturing Co. v. United StatesDistrict Court, E.D. Pennsylvania · 1965
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