H. M. Holloway, Inc. v. Commissioner
United States Tax Court
Depletion -- Discovery Value, Sections 23 (m) and 114 (b) (2), I. R. C. -- The petitioner is engaged in the business of exploring for, mining, and selling gypsum. The evidence establishes (1) that the petitioner made a discovery of a gypsum deposit; (2) the date of its discovery; (3) the fair market value of the property on the date of discovery; and (4) that the fair market value of the property on the date of discovery was materially disproportionate to the cost.
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Depletion -- Discovery Value, Sections 23 (m) and 114 (b) (2), I. R. C. -- The petitioner is engaged in the business of exploring for, mining, and selling gypsum. The evidence establishes (1) that the petitioner made a discovery of a gypsum deposit; (2) the date of its discovery; (3) the fair market value of the property on the date of discovery; and (4) that the fair market value of the property on the date of discovery was materially disproportionate to the cost. Held, petitioner is entitled to the allowance of depletion deductions based upon discovery value.
1Opinion of the Court
OPINION.
Habhon, Judge:
The issue in this proceeding is whether the petitioner is entitled to depletion allowances based upon discovery value, as provided in sections 23 (m) and 114 (b) (2), Internal Revenue Code, in connection with its operations, during the taxable years, in the mining and sale of gypsum from sections 11 and 14 of the Richfield lease. The petitioner, in its income tax returns for the fiscal years ended June 30,1946, and June 30, 1947, claimed depletion deductions based upon discovery value in the amounts of $29,284.32 and $41,233.79, respectively. The respondent determined…
2Cases cited2 opinions
- Reinecke v. SpaldingSupreme Court of the United States · 1930
- Sidwell v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- H. M. Holloway, Inc. v. CommissionerUnited States Tax Court · 1953