Callahan Mining Corp. v. Commissioner
United States Tax Court
Petitioner, as lessor, and ASARCO, as lessee, were parties to an agreement whereby ASARCO was granted the exclusive right to explore, develop, and operate certain mining property in Idaho owned by petitioner, with ASARCO to advance all necessary expenditures therefor.
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Petitioner, as lessor, and ASARCO, as lessee, were parties to an agreement whereby ASARCO was granted the exclusive right to explore, develop, and operate certain mining property in Idaho owned by petitioner, with ASARCO to advance all necessary expenditures therefor. Initially, the net profits from the operation of the mining property were to be used to reimburse ASARCO for such expenditures and to establish and maintain a "working capital" account in the amount of $ 500,000. During the initial period, which ended in early 1959, petitioner was to receive and did receive 50 cents per ton of…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in the Federal income tax of petitioner as follows:
Taxable year Amount
1959_$189,595.11
1960_ 80,275.16
1961_ 120, 598. 96
After various concessions by the parties, the principal issue remaining for decision is the determination of the proper method for computing petitioner’s “gross income from mining” for purposes of percentage depletion. A subsidiary issue involves the treatment by petitioner in computing its “gross income from mining” of State net profits taxes paid for the years in question.
FINDINGS OF FACT
Some of the facts have been…
2Cases cited25 opinions
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Kirby Petroleum Co. v. CommissionerSupreme Court of the United States · 1946
- Estate of H. H. Weinert, Deceased, Jane W. Blumberg, and Hilda B. Weinert v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1961
- Commissioner of Internal Rev. v. JS Abercrombie Co.Court of Appeals for the Fifth Circuit · 1947
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3Cited by11 opinions
- Finley W. Holbrook and Faith Holbrook v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Holbrook v. CommissionerUnited States Tax Court · 1970
- McLean v. CommissionerUnited States Tax Court · 1970
- United States Steel Corporation v. United StatesCourt of Appeals for the Second Circuit · 1971
- Callahan Mining Corp. v. CommissionerUnited States Tax Court · 1969
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