Bernuth v. Commissioner
United States Tax Court
Held: Where petitioners did not have the right to negotiate separately for the drilling of the wells in question, the amount specified by contract as the price for the drilling of oil wells under turnkey contracts is not controlling with respect to the amount allowable as a deduction for intangible drilling expense. Since petitioners offered no other proof, petitioners did not overcome the presumptive correctness of the respondent's determination of a deficiency.
1Opinion of the Court
Quealy, Judge:
The respondent has determined deficiencies in the income tax of the petitioners for the year 1959 as follows:
Docket No. Petitioner Deficiency
4624-67-CharlesM. Bernuth and Shirley P. Bernuth_ $10, 858. 24
4480-67-Estate of Carl Von Bernuth, Deceased, Elizabeth Von 9,088.35
Bernuth, Executrix, el al., and Elizabeth Von
Bernuth, Surviving Wife.
These cases were consolidated for trial and opinion because they present common issues of law and fact with respect to the deducti-bility of oil venture losses incurred by the respective petitioners.
In docket Ho. 4624-67, respondent concedes…
Also in this document: Dissent.
2Cases cited15 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Tait v. Western Maryland Railway Co.Supreme Court of the United States · 1933
- Amos v. CommissionerUnited States Tax Court · 1964
- United States v. Dakota-Montana Oil Co.Supreme Court of the United States · 1933
- Gene O. Clark and Faye Clark v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
10 more not listed; retrieve them via the Exa API.
3Cited by33 opinions
- Lemmen v. CommissionerUnited States Tax Court · 1981
- Dellacroce v. CommissionerUnited States Tax Court · 1984
- Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979
- Brountas v. CommissionerUnited States Tax Court · 1979
- Houchins v. CommissionerUnited States Tax Court · 1982
28 more not listed; retrieve them via the Exa API.