Day Mines, Inc. v. Commissioner
United States Tax Court
Petitioner, a consolidated mining company located in the Coeur d'Alene mining district of Idaho, filed for the year 1957 its election to form the Burke aggregation within its Wallace Operating Unit. Included in the 1957 Burke aggregation were operating mineral interests in more than 40 properties, including the Hercules mine. This aggregation consisted of 5,270 acres and included 367 patented and 16 unpatented mining claims.
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Petitioner, a consolidated mining company located in the Coeur d'Alene mining district of Idaho, filed for the year 1957 its election to form the Burke aggregation within its Wallace Operating Unit. Included in the 1957 Burke aggregation were operating mineral interests in more than 40 properties, including the Hercules mine. This aggregation consisted of 5,270 acres and included 367 patented and 16 unpatented mining claims. None of those included in the Burke aggregation, other than the Hercules mine, had any known commercial mineral deposits that qualified as an ore reserve, although some…
1Opinion of the Court
Dawson, Judge:
Respondent determined deficiencies in petitioner’s income tax as follows:
Tear Deficiency
1957 $32, 047. 55
1958 336, 841.40
1959 533, 600. 39
All issues raised by the pleadings have been settled by agreement of the parties except for the amount of cost depletion allowable to the petitioner during 1957 and 1958 on account of minerals sold in those taxable years from the Hercules mine. This depends upon whether the petitioner’s elections to aggregate a number of its operating mineral interests — called the Burke aggregation' — are valid (1) for the taxable year 1957 under the…
2Cases cited4 opinions
- Lewyt Corp. v. CommissionerSupreme Court of the United States · 1955
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1945
- Amherst Coal Co. v. CommissionerUnited States Tax Court · 1948
- Helvering v. Jewel Mining Co.Court of Appeals for the Eighth Circuit · 1942
3Cited by3 opinions
- McClelland v. CommissionerUnited States Tax Court · 1984
- Day Mines, Inc. v. CommissionerUnited States Tax Court · 1964
- McClelland v. CommissionerUnited States Tax Court · 1984