In Re Levy

Protestant, Leon Levy, in making his income tax return for the year 1936, deducted 20 per cent, from a $45,000 cash bonus received by him from the sale of an oil and gas mining lease upon an undivided interest in lands in Oklahoma. The deduction was made on the assumption that protestant was entitled to a depletion allowance on said sum, under subdivision (g) of section 9, art. 6, ch. 66, S. L. 1935, for the reason that such bonus was equivalent to advanced royalties, or that to the extent of such 20 per cent, it represented a conversion of a capital asset. In support of this position…