Lastarmco, Inc. v. Commissioner of Internal Revenue

TATE, Circuit Judge:

This appeal concerns the interrelationship and application of several provisions of the Internal Revenue Code of 1954, as amended. The Commissioner appeals from the Tax Court’s determination favorable to the taxpayer. 79 T.C. 810 (1982). We affirm.

Overview

For its 1975 tax year, the taxpayer (a corporation) had taxable income (before subtracting the deductions at issue) of $470,980. Subject to percentage limitations to be described, the taxpayer was entitled to deductions from taxable income (a) of $58,049 for percentage depletion of mineral royalties, Section 613A, and (b)…