Keystone Coal Co. v. Commissioner
United States Tax Court
Depreciation -- Property Leased to Another for Use in Mining Coal -- Sec. 23 (l) and (m) -- Sec. 117 (k) (2) -- Revenue Ruling Held Invalid. -- The petitioner, as lessor, leased its coal in place and its depreciable property for the production of that coal.
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Depreciation -- Property Leased to Another for Use in Mining Coal -- Sec. 23 (l) and (m) -- Sec. 117 (k) (2) -- Revenue Ruling Held Invalid. -- The petitioner, as lessor, leased its coal in place and its depreciable property for the production of that coal. The lessee was required to pay a specified royalty per ton of coal mined for the privilege of mining the coal and a separate amount per ton of coal mined for the use of the depreciable property, with the proviso that a minimum total amount had to be paid for the privilege of mining the coal and a separate amount for the use of the…
1Opinion of the Court
The Commissioner determined deficiencies of $4,205.74 and $5,459.07 in income tax of the petitioner for the years 1952 and 1953. The only issue for decision is whether the Commissioner erred in denying the petitioner a deduction for depreciation on its depreciable property used by a lessee in mining coal under a lease from the petitioner.
FINDINGS OF FACT.
The petitioner corporation filed its income tax returns for 1952 and 1953 with the director of internal revenue at Denver, Colorado.
The petitioner for many years prior to October 16, ,1951, had operated the Keystone Mine in Colorado. It owned…
2Cases cited1 opinion
- Leechburg Mining Co. v. CommissionerUnited States Tax Court · 1950
3Cited by1 opinion
- Keystone Coal Co. v. CommissionerUnited States Tax Court · 1958