Donnell v. Commissioner
United States Tax Court
Held: 1. Petitioners are entitled to deduct as intangible drilling and development expenses certain amounts paid in 1959 and 1960 for drilling on four illegally deviated oil wells bottomed outside of property on which they had a working interest in a lease. 2. Petitioners are not entitled to depletion allowance deductions in 1961 and 1962 with respect to oil produced from four illegally deviated oil wells bottomed outside of property on which they had a working interest in a…
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Held: 1. Petitioners are entitled to deduct as intangible drilling and development expenses certain amounts paid in 1959 and 1960 for drilling on four illegally deviated oil wells bottomed outside of property on which they had a working interest in a lease. 2. Petitioners are not entitled to depletion allowance deductions in 1961 and 1962 with respect to oil produced from four illegally deviated oil wells bottomed outside of property on which they had a working interest in a lease because they had no "economic interest" in the oil in place. However, petitioners are entitled to depletion…
1Opinion of the Court
Dawson, Judge:
In these consolidated cases the respondent determined the following income tax deficiencies against the petitioners:
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In docket Ho. 2752-65 the year 1962 is involved because of a net operating loss carryback to the year 1959. Petitioners filed separate community income tax returns for 1962 and 1963.
Three issues are presented for our decision. They are:(1) Whether the petitioners are entitled to deduct as intangible drilling and development expenses the amounts of $15,334.05 in 1959 and $12,949.31 in 1960 for drilling on four illegally deviated oil wells bottomed…
2Cases cited31 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Eisner v. MacOmberSupreme Court of the United States · 1920
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
26 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- C.B. And Ida N. Christie v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- H. M. Harrington, Jr. And Marguerite Harrington v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
- Landreth v. CommissionerUnited States Tax Court · 1968
- Harrington v. CommissionerUnited States Tax Court · 1967
- Lots, Inc. v. CommissionerUnited States Tax Court · 1968
9 more not listed; retrieve them via the Exa API.