Roeser & Pendleton, Inc. v. Commissioner
United States Tax Court
1. Petitioner drilled oil-gas wells for the usual contract price, under a contract providing for immediate payment of its out-of-pocket expense, and for deferment of the balance until the owner had recovered all other costs, after which petitioner would receive monthly an amount not less than 50 per cent of the owner's net income from the four leases on which the drilling was done, until the owner's obligation was fully discharged.
Read the full summary
1. Petitioner drilled oil-gas wells for the usual contract price, under a contract providing for immediate payment of its out-of-pocket expense, and for deferment of the balance until the owner had recovered all other costs, after which petitioner would receive monthly an amount not less than 50 per cent of the owner's net income from the four leases on which the drilling was done, until the owner's obligation was fully discharged. Held, the petitioner acquired no economic interest in the oil, and an amount received in the taxable year in settlement of a controversy over the matter was…
1Opinion of the Court
OPINION.
Disney, Judge:
This case involves excess profits taxes of M-B-K Drilling Co. for its fiscal year ending June 30, 1945, in the amount of $37,120.21 and income tax for its fiscal year ending June 30, 1946, in the amount of $5,192.03. After concessions made, and admission of transferee liability by Roeser & Pendleton, Inc., Kerr-McGee Oil Industries, Inc., and Big Chief Drilling Co., there remain for our consideration only two questions: (a) Whether $31,060.48 received by M-B-K Drilling Co., in a compromise on June 17, 1945, is long term capital gain as contended by petitioner or ordinary…
2Cases cited8 opinions
- Lyeth v. HoeySupreme Court of the United States · 1938
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Anderson v. HelveringSupreme Court of the United States · 1940
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Weir Long Leaf Lumber Co. v. CommissionerUnited States Tax Court · 1947
3 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- A B C Brewing Corporation (Formerly Aztec Brewing Co.), a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Donnell v. CommissionerUnited States Tax Court · 1967
- Standley v. CommissionerUnited States Tax Court · 1992
- American Well & Prospecting Company v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1956
- Big Chief Drilling Company v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1952
7 more not listed; retrieve them via the Exa API.