Leechburg Mining Co. v. Commissioner
United States Tax Court
Petitioner is the lessee of a coal mining property, including the mine, plant, machinery and equipment. For this property petitioner paid rents and royalties in the sum of 25 cents for each ton of coal mined, 15 cents of which was allocated by the lease to rental of the plant and 10 cents to royalty for coal produced.
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Petitioner is the lessee of a coal mining property, including the mine, plant, machinery and equipment. For this property petitioner paid rents and royalties in the sum of 25 cents for each ton of coal mined, 15 cents of which was allocated by the lease to rental of the plant and 10 cents to royalty for coal produced. Held: For the purpose of determining percentage depletion allowable under sections 23 (m) and 114 (b) (4), Internal Revenue Code, there must be excluded from gross income from the mine a sum equal to the full amount of 25 cents per ton paid as rents and royalties with respect to…
1Opinion of the Court
OPINION.
Leech, Judge:
By this proceeding the petitioner seeks redetermination of a deficiency in excess profits tax determined by the respondent in the sum of $4,228.36 for the taxable year ended June 30,1945. The issue presented is whether, in computing gross income of the petitioner from certain completely equipped coal mining properties, of which petitioner is the lessee, for the purpose of determining percentage depletion allowable under sections 23 (m) and 114 (b) (4) of the Interna] Revenue Code and Regulations 111, section 29.23 (m)-l, a sum equal to the rentals paid by the petitioner…
2Cases cited1 opinion
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1945
3Cited by6 opinions
- Brown v. CommissionerUnited States Tax Court · 1954
- Keystone Coal Co. v. CommissionerUnited States Tax Court · 1958
- Brown v. CommissionerUnited States Tax Court · 1954
- Brown v. CommissionerUnited States Tax Court · 1954
- Keystone Coal Co. v. CommissionerUnited States Tax Court · 1958
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