Umsted v. Commissioner
United States Board of Tax Appeals
1. An amount representing bonus for an oil and gas lease which was impounded by a court pending decision as to the title to the land is income to its recipients as of the date the court rendered its decision and ordered the amount paid over to the rightful owners. 2. Held, that a certain instrument is not evidence of a sale of real estate but is an oil and gas lease in the usual form and amounts received thereunder as bonus and royalties constitute income subject to…
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1. An amount representing bonus for an oil and gas lease which was impounded by a court pending decision as to the title to the land is income to its recipients as of the date the court rendered its decision and ordered the amount paid over to the rightful owners. 2. Held, that a certain instrument is not evidence of a sale of real estate but is an oil and gas lease in the usual form and amounts received thereunder as bonus and royalties constitute income subject to deductions for depletion.
1Opinion of the Court
OPINION.
Lansdon:
The respondent has asserted deficiencies against each petitioner as follows:
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All of the issues raised by the pleadings have been settled by stipulation except the following: (1) Whether income from certain property, which was impounded by a court pending the outcome of litigation over title, is taxable when received by the court receiver or upon termination of the litigation; (2) whether amounts paid by a landowner to attorneys for services rendered in a suit against an adverse claimant are a deductible expense; (3) whether a certain written instrument is a lease…
2Cases cited3 opinions
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Sparrow v. CommissionerUnited States Board of Tax Appeals · 1929
- Grandin v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by4 opinions
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934
- Turbeville v. CommissionerUnited States Board of Tax Appeals · 1934
- Umsted v. CommissionerUnited States Board of Tax Appeals · 1933