Potts v. Commissioner
United States Tax Court
Petitioners extracted oil and gas in 1981, reported gross income therefrom in 1982, and offset that income with a percentage depletion allowance pursuant to sec. 613A, I.R.C. 1954. In computing the allowance, petitioners used a rate of 20 percent, the applicable percentage depletion rate for 1981 under the rate schedule of sec. 613A(c)(5), I.R.C. 1954, instead of 18 percent, the applicable percentage depletion rate thereunder for 1982. Held, petitioners must use the 1982…
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Petitioners extracted oil and gas in 1981, reported gross income therefrom in 1982, and offset that income with a percentage depletion allowance pursuant to sec. 613A, I.R.C. 1954. In computing the allowance, petitioners used a rate of 20 percent, the applicable percentage depletion rate for 1981 under the rate schedule of sec. 613A(c)(5), I.R.C. 1954, instead of 18 percent, the applicable percentage depletion rate thereunder for 1982. Held, petitioners must use the 1982 rate of 18 percent, and not the 1981 rate of 20 percent, as the applicable percentage depletion rate under the rate…
1Opinion of the Court
Ray H. and Patricia Potts, Petitioners v. Commissioner of Internal Revenue, Respondent
Potts v. Commissioner
Docket No. 2356-87
United States Tax Court
90 T.C. 995; 1988 U.S. Tax Ct. LEXIS 68; 90 T.C. No. 65; 101 Oil & Gas Rep. 189;
May 16, 1988. May 16, 1988, Filed
Decision will be entered under Rule 155.
Petitioners extracted oil and gas in 1981, reported gross income therefrom in 1982, and offset that income with a percentage depletion allowance pursuant to sec. 613A, I.R.C. 1954. In computing the allowance, petitioners used a rate of 20 percent, the applicable percentage depletion rate for 1981…
2Cases cited5 opinions
- Commissioner v. EngleSupreme Court of the United States · 1984
- Glass v. CommissionerUnited States Tax Court · 1981
- Engle v. CommissionerUnited States Tax Court · 1981
- Fred L. And Mary A. Engle v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1982
- Potts v. CommissionerUnited States Tax Court · 1988