Nail v. Commissioner
United States Board of Tax Appeals
1. Where the fee owner of real estate in Texas disposes of interests in oil and gas underlying her lands, retaining to herself an undivided fractional interest therein, held, such retained interest is property and subject to conveyance or transfer.
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1. Where the fee owner of real estate in Texas disposes of interests in oil and gas underlying her lands, retaining to herself an undivided fractional interest therein, held, such retained interest is property and subject to conveyance or transfer. Held, further, after conveyance or transfer of such property the income arising therefrom belongs to the new owner, the transferee, and is not taxable to transferor. 2. Fees paid attorneys for services rendered in defending against adverse claims respecting boundaries of lands, where no enlargement, or change of owner's existing rights is effected,…
1Opinion of the Court
*36OPINION.
GoodRioh :
There is no question but that the amounts received from the sale of oil and gas constituted income within the meaning of the revenue acts and, ordinarily, are taxable. The issue here is, Whose income was it? Respondent contends the income belonged to-petitioners’ decedent, because decedent transferred only a right to receive income; petitioners contend that it belonged to the trust, because the trust was the owner of the property from which the income arose.
It is well settled that an assignment of income does not relieve the assignor of the tax thereon, but that if property,…
2Cases cited7 opinions
- Stephens County v. Mid-Kansas Oil & Gas Co.Texas Supreme Court · 1923
- Texas Company v. W.H. DaughertyTexas Supreme Court · 1915
- The Texas Company v. DavisTexas Supreme Court · 1923
- Japhet v. McRaeTexas Commission of Appeals · 1925
- Waggoner Estate v. Wichita CountySupreme Court of the United States · 1927
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Nail v. CommissionerUnited States Board of Tax Appeals · 1932