Pittston Co. v. Commissioner
United States Tax Court
Held, a contract giving the taxpayer the exclusive right for a period of years to buy all the coal mined in certain leased property was a "capital asset," and the disposition of the rights under that contract to the other contracting party for a sum of money represented a "sale or exchange" resulting in capital gain rather than ordinary income.
1Opinion of the Court
OPINION.
RauMj Judge:
The petitioner contests a determination of deficiency in income tax for the year 1949 in the amount of $190,147.49. The only question is whether the amount of $500,000 received in 1949 by Pattison & Bowns, Inc., a wholly owned subsidiary of petitioner, from the Russell Fork Coal Company, is taxable as capital gain or ordinary income. All of the facts have been stipulated.
On January 25,1944, Pattison & Bowns and Russell Fork entered into a written contract which provided in part as follows:
That in consideration of the mutual covenants and conditions herein set forth and of…
2Cases cited11 opinions
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Jones, Collector of Internal Revenue v. CorbynCourt of Appeals for the Tenth Circuit · 1950
- Commissioner of Internal Revenue v. Starr Bros., IncCourt of Appeals for the Second Circuit · 1953
- General Artists Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
- Commissioner of Internal Revenue v. RayCourt of Appeals for the Fifth Circuit · 1954
6 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Commissioner of Internal Revenue v. The Pittston CompanyCourt of Appeals for the Second Circuit · 1958
- Leh v. CommissionerUnited States Tax Court · 1957
- Levenson v. United StatesDistrict Court, N.D. Alabama · 1957
- Metropolitan Bldg. Co. v. CommissionerUnited States Tax Court · 1959
- Estate of Israel v. CommissionerUnited States Tax Court · 1997
19 more not listed; retrieve them via the Exa API.