Jewel Mining Co. v. Commissioner
United States Board of Tax Appeals
Petitioner in 1930 leased coal mining rights in a tract of land and subsequently, before the taxable year, subleased these rights in a portion of the acreage covered by the original lease, reserving certain royalties. Mining operations were carried on during the taxable year by the sublessee and the petitioner, each on the land of which it was the ultimate lessee.
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Petitioner in 1930 leased coal mining rights in a tract of land and subsequently, before the taxable year, subleased these rights in a portion of the acreage covered by the original lease, reserving certain royalties. Mining operations were carried on during the taxable year by the sublessee and the petitioner, each on the land of which it was the ultimate lessee. Petitioner treated income from its own operations and royalties from its sublessee as income from a single property in computing depletion. Held, petitioner has properly treated the income from the two sources as arising from a…
1Opinion of the Court
*1124OPINION.
Aiuindell :
The substantial question at issue is the limits to be assigned to the words “the property” as used in section 114 (b) (4) of the Revenue Act of 1934 as partially defined in article 23 (m)-l (j) of Regulations 86.1 Dependent on this question is the method by which allowable depletion is to be computed. Petitioner argues, first, that the leasehold acquired on July 1, 1930, is “the property” contem*1125plated by the statute, regardless of the later sublease of a portion of it, and that it is correct in lumping together the gross income from its own operations and the royalties…
2Cited by5 opinions
- Maytag v. CommissionerUnited States Tax Court · 1959
- Estate of Bryan v. CommissionerUnited States Tax Court · 1960
- Estate of Bryan v. CommissionerUnited States Tax Court · 1960
- Jewel Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Maytag v. CommissionerUnited States Tax Court · 1959