Louisiana Delta Hardwood Lumber Co. v. Commissioner
United States Tax Court
1. Petitioner had a net operating loss in 1940. For 1941 petitioner took a deduction for percentage depletion. Since there was no allowable cost depletion, the percentage depletion so taken was in its entirety in excess of any allowable cost depletion.
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1. Petitioner had a net operating loss in 1940. For 1941 petitioner took a deduction for percentage depletion. Since there was no allowable cost depletion, the percentage depletion so taken was in its entirety in excess of any allowable cost depletion. Held, in converting the net operating loss carry-over from 1940 into a net operating loss deduction for 1941, under section 122 (c) of the Internal Revenue Code, the carry-over from 1940 must be reduced by an amount equivalent to the deduction taken by petitioner in 1941 for percentage depletion. 2. Held, under the facts, that petitioner can…
1Opinion of the Court
OPINION.
Hill, Judge-.
Net operating loss deduction issue. — Respondent, in arriving at the net operating loss deduction for 1941, reduced petitioner’s net operating loss carry-over of $41,484.09 by $37,341.38, which latter figure represents the excess of 1941 percentage depletion over cost depletion. Since there was no allowable cost depletion, all of the percentage depletion constitutes such excess. Respondent argues that this reduction was made in accordance with section 122 of the Internal Revenue Code, as interpreted by the regulations. Petitioner contends that this reduction is improper…
2Cases cited1 opinion
- Atlantic C. L. R. Co. v. CommissionerUnited States Tax Court · 1944
3Cited by11 opinions
- Tennessee Consol. Coal Co. v. CommissionerUnited States Tax Court · 1950
- William C. Atwater & Co. v. CommissionerUnited States Tax Court · 1948
- Magale v. United StatesUnited States Court of Claims · 1950
- Cranberry Improvement Co. v. SmithDistrict Court, E.D. Pennsylvania · 1954
- Cranberry Improvement Co. v. SmithCourt of Appeals for the Third Circuit · 1955
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