Houston Oil & Minerals Corp. v. Commissioner
United States Tax Court
Petitioner held operating mineral interests from which it carved out overriding royalties that it transferred to a trust for the benefit of its shareholders. Petitioner then distributed to its shareholders units of interest in the trust.
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Petitioner held operating mineral interests from which it carved out overriding royalties that it transferred to a trust for the benefit of its shareholders. Petitioner then distributed to its shareholders units of interest in the trust. Held, petitioner did not dispose of "oil, gas, or geothermal property" as that term is defined in sec. 1254, I.R.C. 1954, as amended and in effect on Apr. 24, 1981, the date of the transfer, and is, therefore, not required to "recapture" the IDC previously deducted which related to the subject operating mineral interests.
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined a deficiency in petitioner’s Federal income tax for the taxable year 1980 in the amount of $2,587,079 and a deficiency in petitioner’s Federal income tax for the short taxable year ended April 24, 1981, in the amount of $7,072,671. Respondent claimed an increased deficiency in an amendment to his answer for the short taxable year ended April 24, 1981, in the amount of $4,487,160. The parties have settled all of the issues framed by the statutory notice of deficiency and the amendment to the answer except one. The sole issue to be decided is…
2Cases cited12 opinions
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Kirby Petroleum Co. v. CommissionerSupreme Court of the United States · 1946
- Standard Oil Co. v. CommissionerUnited States Tax Court · 1981
- United States v. W. H. CockeCourt of Appeals for the Fifth Circuit · 1968
7 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Square D Co. v. Comm'rUnited States Tax Court · 2003
- Southland Royalty Co. v. United StatesUnited States Court of Claims · 1991
- Houston Oil & Minerals Corp. v. CommissionerUnited States Tax Court · 1989
- Square D Co. v. Comm'rUnited States Tax Court · 2003
- Square D Company and Subsidiaries v. CommissionerUnited States Tax Court · 2003
1 more not listed; retrieve them via the Exa API.