Pleasanton Gravel Co. v. Commissioner
United States Tax Court
T Corp. entered into a contract under which J Co. had the right to remove sand and gravel from T Corp.'s property, and which, as construed herein, did not require it to remove all or any specified portion thereof. J Co. undertook to pay for the sand and gravel removed at a price per ton geared to the wholesale selling price of sand and gravel then prevailing in the local market during the month such sand and gravel was removed.
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T Corp. entered into a contract under which J Co. had the right to remove sand and gravel from T Corp.'s property, and which, as construed herein, did not require it to remove all or any specified portion thereof. J Co. undertook to pay for the sand and gravel removed at a price per ton geared to the wholesale selling price of sand and gravel then prevailing in the local market during the month such sand and gravel was removed. Held, T Corp. did not sell its minerals "in place" but rather received royalty payments which constituted personal holding company income on account of which T Corp.…
1Opinion of the Court
Raum, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income taxes in the following amounts:
TYE Oct. 31— Deficiency
1967_ $23,570.73
1968_ 21,570.17
1969_ 26,133.00
The ultimate issue in this case is whether petitioner is a personal holding company subject to the personal holding company tax imposed by section 541, I.R.C. 1954. The only substantial question bearing on this issue is whether petitioner’s receipts from the sale of its sand and gravel deposits constituted royalty income or long-term capital gain. In addition to the substantive issue herein, there are presented…
2Cases cited46 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Commissioner v. Lane-Wells Co.Supreme Court of the United States · 1944
41 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Benjamin v. CommissionerUnited States Tax Court · 1976
- Atlantic Veneer Corp. v. CommissionerUnited States Tax Court · 1985
- Schwager v. CommissionerUnited States Tax Court · 1975
- Lesher v. CommissionerUnited States Tax Court · 1979
- Grossman v. CommissionerUnited States Tax Court · 1980
38 more not listed; retrieve them via the Exa API.