Occidental Petroleum Corp. v. United States

This tax refund suit comes to us on fairly simple and straightforward stipulated facts. In calculating its income tax for the years 1970 and 1971, Occidental Petroleum Corporation claimed and was allowed deductions for percentage depletion under section 611 of the Internal Revenue Code in the aggregate amounts of about $190,000,000. This amount exceeded plaintiffs adjusted basis in the properties by approximately $19,000,000. Occidental also properly received special treatment under section 1201 of the Code for about $18,000,000 in long term capital gains. Taking into account the advantages…