Barnett v. Commissioner
United States Board of Tax Appeals
Where in computing the taxpayer's net income for 1934 a depletion deduction of 27 1/2 percent was properly allowed on the bonus paid the taxpayer for granting an oil and gas lease and where in 1935 the lease was terminated without any oil or gas having been extracted from the property covered by the lease, the Commissioner did not err in restoring to income for 1935 the amount of the depletion deduction legally taken for 1934.
1Opinion of the Court
OPINION.
Murdock:
The Commissioner determined a deficiency of $341.55 in the income tax liability of the petitioner for the calendar year 1935. The facts in the case have been stipulated and are hereby found as stipulated. The only issue for decision is whether the Commissioner erred in including $6,779.93 in the petitioner’s income for 1935. He explained his action as follows:
In accordance with the provisions of Article 23 (m)-10 of Regulations 80, there was allowed in the year 1934 a deduction of $11,000.00 as statutory depletion on $40,000.00 cash bonus received during the year as part…
2Cases cited4 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Herring v. CommissionerSupreme Court of the United States · 1934
3Cited by14 opinions
- Douglas v. CommissionerSupreme Court of the United States · 1944
- Freeman v. CommissionerUnited States Tax Court · 1967
- Barnett v. CommissionerUnited States Board of Tax Appeals · 1939
- Brown v. CommissionerUnited States Tax Court · 1943
- Central Loan & Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1939
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