Rose v. Commissioner
United States Tax Court
Petitioner as part-owner of certain real property entered into a contract with the grantee. Although the contract was couched in the form of a sale of minerals "in place" it was in substance an agreement on the part of the grantee to pay royalties based upon the quantity and quality of sand and gravel which he was to remove from said property. Held, the substance of the agreement governs its Federal tax consequences.
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Petitioner as part-owner of certain real property entered into a contract with the grantee. Although the contract was couched in the form of a sale of minerals "in place" it was in substance an agreement on the part of the grantee to pay royalties based upon the quantity and quality of sand and gravel which he was to remove from said property. Held, the substance of the agreement governs its Federal tax consequences. The payments received by the petitioner for sand and gravel were ordinary income subject to the 5-percent allowance for percentage depletion under sec. 613(b)(6)(A), I.R.C. 1954,…
1Opinion of the Court
OPINION
Sterrett, Judge:
The respondent determined deficiencies in the Federal income tax of the petitioner for the taxable years 1964, 1965, and 1966 in the amounts of $6,413.63, $7,178.99, and $1,623.46, respectively. Due to concessions of the parties the sole issue remaining for decision is whether certain payments under a document styled “Sand and Gravel Deed” are long-term capital gain or, as the respondent contends, ordinary income subject to a 5-percent allowance for depletion under section 613 (b) (6) (A), I.R.C. 1954.1
All of the facts were stipulated. The stipulation and the exhibits…
2Cases cited8 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Crowell Land and Mineral Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1957
- Nathaniel C. Wood and Gertrude L. Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- William Louis Albritton v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1957
- Crowell Land & Mineral Corp. v. CommissionerUnited States Tax Court · 1955
3 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1975
- Gammill v. CommissionerUnited States Tax Court · 1974
- Kraus v. CommissionerUnited States Tax Court · 1973
- Ridley v. CommissionerUnited States Tax Court · 1972
- Strutzel v. CommissionerUnited States Tax Court · 1973
11 more not listed; retrieve them via the Exa API.