Ah Pah Redwood Co. v. Commissioner
United States Tax Court
1. Held, the amounts received by petitioner in 1948 and 1949 from Coast Redwood Co. for timber cut by the latter in those years from the property of petitioner are properly taxable as ordinary income. 2. Where petitioner did not in fact ascertain at any time during 1948 and 1949 a discrepancy between its actual timber resources and prior estimates, even though such fact was at all times readily ascertainable, a revision of petitioner's depletion allowance effective for the…
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1. Held, the amounts received by petitioner in 1948 and 1949 from Coast Redwood Co. for timber cut by the latter in those years from the property of petitioner are properly taxable as ordinary income. 2. Where petitioner did not in fact ascertain at any time during 1948 and 1949 a discrepancy between its actual timber resources and prior estimates, even though such fact was at all times readily ascertainable, a revision of petitioner's depletion allowance effective for the years 1948 and 1949 is not warranted under section 23 (m), I. R. C. 1939.
1Opinion of the Court
OPINION,
Van Fossan, Jvdge:
The first issue is whether the amounts received by petitioner in 1948 and 1949 from Coast for timber cut in those years by the latter from the Sage Tract are properly taxable as capital gains, as urged by petitioner, or as ordinary income, as deter-, mined by respondent. The statutes involved are sections 117 (j) (1), and 117 (k) (2) of the Internal BeveUue Code of 1939, as amended, the pertinent provisions of both of which are set forth below.2 It is petitioner’s position that the only question to be resolved under this issue is whether or not its oral arrangement…
2Cases cited5 opinions
- Beck v. CommissionerUnited States Tax Court · 1950
- Forbes v. City of Los AngelesCalifornia Court of Appeal · 1929
- McGinn v. WilleyCalifornia Court of Appeal · 1914
- Anderson v. PalladineCalifornia Court of Appeal · 1918
- Petit Anse Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
3Cited by14 opinions
- Ah Pah Redwood Company, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
- Lawton v. CommissionerUnited States Tax Court · 1959
- Ray v. CommissionerUnited States Tax Court · 1959
- Jantzer v. CommissionerUnited States Tax Court · 1959
- Carpenter v. CommissionerUnited States Tax Court · 1961
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