Adkins v. Commissioner
United States Tax Court
1. Petitioners were drift miners who entered into leases and coal sales agreements giving them the right and obligation to mine certain areas to exhaustion or for 1-year renewable periods. They were not required to make any royalty payments as such (save on de minimis amounts of "employee" coal) but contend that they acquired an economic (depletable) interest in the coal in place through large expenditures of time and risk capital.
Read the full summary
1. Petitioners were drift miners who entered into leases and coal sales agreements giving them the right and obligation to mine certain areas to exhaustion or for 1-year renewable periods. They were not required to make any royalty payments as such (save on de minimis amounts of "employee" coal) but contend that they acquired an economic (depletable) interest in the coal in place through large expenditures of time and risk capital. Held: Such investments were quite similar to those considered by the Supreme Court in Paragon Coal Co. v. Commissioner, 380 U.S. 624. They were all either…
1Opinion of the Court
FORRESTER, Judge:
Respondent lias determined deficiencies in petitioners’ Federal income tax for the calendar years 1961, 1962, and 1963 as follows:
[[Image here]]
Concessions have been made by all parties. The only issues remaining are:(1) Whether petitioners had a sufficient economic interest in coal properties so as to entitle them to percentage depletion;(2) Whether certain expenditures for mining equipment were currently deductible expenses, or were required to be capitalized.
PINDINGS OP PACT
Some of the facts have been stipulated and are incorporated herein by this reference. Those facts…
2Cases cited8 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Parsons v. SmithSupreme Court of the United States · 1959
- Paragon Jewel Coal Co. v. CommissionerSupreme Court of the United States · 1965
- Mullins v. CommissionerUnited States Tax Court · 1967
3 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Adkins v. CommissionerUnited States Tax Court · 1969
- Costantino v. CommissionerUnited States Tax Court · 1970
- Gap Anthracite Co. v. CommissionerUnited States Tax Court · 1972