Taylor v. Commissioner
United States Board of Tax Appeals
A retained royalty right in an oil lease is property. When it, or a part of it, or an interest therein, is sold in 1921, the taxable gain or deductible loss resulting therefrom is based on the cost or the March 1, 1913, value thereof, in accordance with section 202 of the Revenue Act of 1921, and not upon the discovery value.
1Opinion of the Court
*1202OPINION.
TkaMmeix :
There is no controversy over the facts in this case The question to be determined is whether the basis which is to b applied against the cost of determining the profit or loss from th sale of the royalty interest is the cost or fair market price or valu as of March 1, 1913, or is it to be the value which the seller wouli have had returned to her in the way of deductions for depletion base: on discovery value had she retained the interest instead of selling il
The Commissioner relies upon section 202 of the Nevenue Act o 1921 and the taxpayer relies upon section 214 (a) (10)…
2Cases cited9 opinions
- Lynch v. Alworth-Stephens Co.Supreme Court of the United States · 1925
- Hamilton v. RathboneSupreme Court of the United States · 1899
- United States v. Biwabik Mining Co.Supreme Court of the United States · 1918
- Frober v. PeopleIllinois Supreme Court · 1892
- Bryan v. KennettSupreme Court of the United States · 1885
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Baucum v. CommissionerUnited States Board of Tax Appeals · 1929
- Crayton v. CommissionerUnited States Board of Tax Appeals · 1928
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1929
- Hudson v. CommissionerUnited States Board of Tax Appeals · 1929
- McLean v. CommissionerUnited States Board of Tax Appeals · 1940
2 more not listed; retrieve them via the Exa API.