P-M-K Petroleum Co. v. Commissioner
United States Board of Tax Appeals
1. Expenditures for fuel, wages, repairs, hauling, etc., in connection with the drilling of oil wells are capital expenses recoverable through depreciation rather than depletion. 2. Expenses of shooting oil wells with nitroglycerine incurred before the wells are placed in commercial production is a capital expense. 3. Costs incurred during period of commercial production for pulling rods and tubing, recupping the working barrels and cleaning out wells to restore such wells…
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1. Expenditures for fuel, wages, repairs, hauling, etc., in connection with the drilling of oil wells are capital expenses recoverable through depreciation rather than depletion. 2. Expenses of shooting oil wells with nitroglycerine incurred before the wells are placed in commercial production is a capital expense. 3. Costs incurred during period of commercial production for pulling rods and tubing, recupping the working barrels and cleaning out wells to restore such wells to original production, such recupping being made necessary by the fact that cups wear out in three or four months, and…
1Opinion of the Court
P-M-K PETROLEUM COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
P-M-K Petroleum Co. v. Commissioner
Docket Nos. 50576, 54779.
United States Board of Tax Appeals
24 B.T.A. 360; 1931 BTA LEXIS 1652;
October 19, 1931, Promulgated
1. Expenditures for fuel, wages, repairs, hauling, etc., in connection with the drilling of oil wells are capital expenses recoverable through depreciation rather than depletion.
2. Expenses of shooting oil wells with nitroglycerine incurred before the wells are placed in commercial production is a capital expense.
3. Costs incurred during period of…
2Cases cited1 opinion
- P-M-K Petroleum Co. v. CommissionerUnited States Board of Tax Appeals · 1931