Brown v. Commissioner
United States Tax Court
1. Depletion -- Percentage -- Gross Income From the Property -- Economic Interest of Separate Miner -- Sec. 114 (b) (4) (A), I. R. C. -- Regs. 111, Sec. 23 (m)-1 (f). -- A percentage of gross sales less rents, royalties, and sales commissions, paid to a separate entity for mining, producing, transporting, and loading coal from leased premises must be excluded from the "gross income from the property" of the lessee in computing percentage depletion of the lessee.
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1. Depletion -- Percentage -- Gross Income From the Property -- Economic Interest of Separate Miner -- Sec. 114 (b) (4) (A), I. R. C. -- Regs. 111, Sec. 23 (m)-1 (f). -- A percentage of gross sales less rents, royalties, and sales commissions, paid to a separate entity for mining, producing, transporting, and loading coal from leased premises must be excluded from the "gross income from the property" of the lessee in computing percentage depletion of the lessee. James Ruston, 19 T. C. 284, dismissed (C. A. 4, Sept. 18, 1953) followed. 2. Depleton -- Percentage -- Rents -- Railroad Siding --…
1Opinion of the Court
OPINION.
Murdock, Judge:
Section 23 of the Internal Revenue Code allows a deduction for depletion in the case of mines but refers to section 114 (b) (3) and (4) for percentage depletion allowable under it. Section 114 (b) (4) (A) allows, in the case of coal mines, 5 per cent “of the gross income from the property during the taxable year, excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property” as the deduction for depletion under section 23 (m). Section 114 (b) (4) (B) defines “gross income from the property.” The…
2Cases cited3 opinions
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1952
- Ruston v. CommissionerUnited States Tax Court · 1952
- Leechburg Mining Co. v. CommissionerUnited States Tax Court · 1950
3Cited by4 opinions
- Commissioner of Internal Revenue v. The Mammoth Coal CompanyCourt of Appeals for the Third Circuit · 1956
- Emil Usibelli and Rose P. Usibelli v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Brown v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. The Mammoth Coal CompanyCourt of Appeals for the Third Circuit · 1956