Goforth v. Commissioner
United States Board of Tax Appeals
1. Petitioners acquired by purchase in 1912 at a cost of $3,000 an apparent fee simple title to 120 acres of land, which then had no mineral value. In 1923 the land became valuable as prospective oil property. Wells were brought in, and petitioners executed an oil lease on the usual royalty basis. In 1925 suit was instituted by an alleged heir of the original Indian allottee, seeking to recover the land from petitioners.
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1. Petitioners acquired by purchase in 1912 at a cost of $3,000 an apparent fee simple title to 120 acres of land, which then had no mineral value. In 1923 the land became valuable as prospective oil property. Wells were brought in, and petitioners executed an oil lease on the usual royalty basis. In 1925 suit was instituted by an alleged heir of the original Indian allottee, seeking to recover the land from petitioners. In 1927 the trial court entered judgment holding that petitioners owned an undivided one-half interest in the land, and, an appeal having been taken, petitioners settled the…
1Opinion of the Court
*1212OPINION.
TRAmmell:
The principal issue in this proceeding relates to the proper method of computing the profit derived by petitioners in 1928 from the sale to Morrison of an undivided 30-acre interest in the mineral rights in their land. Petitioners contend that the taxable gain derived by them was $24,399. By a radically different *1213method of computation respondent has determined the profit at $48,192.87.
Respondent approved the revenue agent’s report in which the profit was computed bj assuming that, upon settlement on January 80, 1928, of the litigation involving title to the lands, petitioners…
2Cases cited1 opinion
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
3Cited by4 opinions
- United States v. De BonchampsCourt of Appeals for the Ninth Circuit · 1960
- Goforth v. CommissionerUnited States Board of Tax Appeals · 1935
- Horsting v. CommissionerUnited States Tax Court · 1946
- United States v. Dale King De Bonchamps, United States of America v. Winston S. Cowgill and Geraldine King Cowgill, United States of America v. Ada N. KingCourt of Appeals for the Ninth Circuit · 1960