Missouri River Sand Co. v. Commissioner
United States Tax Court
Petitioner engaged in sand and gravel dredging at two locations on the Missouri River pursuant to nonexclusive licenses which granted no interest in the minerals in place. Held, petitioner did not have an economic interest in said deposits sufficient to entitle it to percentage depletion deductions.
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Petitioner engaged in sand and gravel dredging at two locations on the Missouri River pursuant to nonexclusive licenses which granted no interest in the minerals in place. Held, petitioner did not have an economic interest in said deposits sufficient to entitle it to percentage depletion deductions. Commissioner v. Southwest Exploration Co., 350 U.S. 308 (1956); Oil City Sand & Gravel Co. v. Commissioner, 32 T.C. 31 (1959); and Victory Sand & Concrete, Inc. v. Commissioner, 61 T.C. 407 (1947), distinguished.
1Opinion of the Court
Wiles, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes for the fiscal years ending March 31, 1975, and March 31, 1976, in the amounts of $3,876.36 and $4,478.07, respectively. The issue for decision is whether petitioner held an economic interest in the sand deposits it dredged from the Missouri River within the meaning of section 1.611 — 1(b)(1), Income Tax Regs.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioner is a corporation organized under the laws of the State of Missouri, with its principal place of business…
2Cases cited9 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Parsons v. SmithSupreme Court of the United States · 1959
- Weaver v. CommissionerUnited States Tax Court · 1979
- Ramey v. CommissionerUnited States Tax Court · 1967
4 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Husky Oil Co. v. CommissionerUnited States Tax Court · 1984
- Missouri River Sand Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1985
- Husky Oil Co. v. CommissionerUnited States Tax Court · 1984
- Missouri River Sand Co. v. CommissionerUnited States Tax Court · 1984
- Somont Oil Co. v. CommissionerUnited States Tax Court · 1991