Kehota Mining Co. v. Commissioner
United States Board of Tax Appeals
1. A corporate taxpayer organized in 1916 and engaged in coal mining operations is entitled to a deduction for depreciation of buildings and all miscellaneous equipment used in its business, computed on the basis of the cost, less salvage, if any, and spread over the estimated time of continuing mining operations in proportion to the quantity of coal produced during each accounting period. 2. Said corporate taxpayer is entitled to a depreciation deduction upon the cost of…
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1. A corporate taxpayer organized in 1916 and engaged in coal mining operations is entitled to a deduction for depreciation of buildings and all miscellaneous equipment used in its business, computed on the basis of the cost, less salvage, if any, and spread over the estimated time of continuing mining operations in proportion to the quantity of coal produced during each accounting period. 2. Said corporate taxpayer is entitled to a depreciation deduction upon the cost of steam and electric shovel units, less salvage, computed upon the basis of the number of tons of coal which each shovel…
1Opinion of the Court
*888OPINION.
Teussell: The questions presented in this appeal are. whether the taxpayer is entitled to a greater rate of depreciation on mining machinery and equipment and dwelling houses erected near the mines, less salvage, than that allowed by the Commissioner; and, also, whether taxpayer is entitled to a greater deduction for depletion of mines than that allowed by the Commissioner.
Section 234 (a) (9) of the Revenue Act of 1918 provides that taxpayers engaged in the recovery and merchandising of natural resources may have deductions from gross income due to the depletion of such resources and…
2Cited by4 opinions
- Albritton v. CommissionerUnited States Tax Court · 1961
- Kehota Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1926
- Philadelphia Quartz Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Vogue Silk Hosiery Co. v. CommissionerUnited States Board of Tax Appeals · 1932