McLean v. Commissioner
United States Board of Tax Appeals
1. CAPITAL GAIN - SALE. - An assignment of an oil and gas lease providing for the payment of a certain amount in cash, an additional amount of cash to be paid out of one-eighth of the oil produced, and an overriding royalty, all payable to the assignor, was not a sale, and the payments received on account of the cash and the additional amount to be paid out of one-eighth of the oil were not proceeds from the sale of a capital asset. 2. SECTION 102(a) OF THE REVENUE ACTS OF…
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1. CAPITAL GAIN - SALE. - An assignment of an oil and gas lease providing for the payment of a certain amount in cash, an additional amount of cash to be paid out of one-eighth of the oil produced, and an overriding royalty, all payable to the assignor, was not a sale, and the payments received on account of the cash and the additional amount to be paid out of one-eighth of the oil were not proceeds from the sale of a capital asset. 2. SECTION 102(a) OF THE REVENUE ACTS OF 1928 AND 1932. - Since the transaction described above was not a sale, section 102(a) does not apply. 3. DEDUCTIONS -…
1Opinion of the Court
OPINION.
Murdook: The Commissioner has determined deficiencies in the petitioners’ income taxes as follows:
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The questions presented for decision are:
1. Whether payments received under provisions (a) and. (b) of a contract dated March 18, 1931, with the Yount-Lee Oil Co., which payments totaled $300,000 in 1931 and $200,000 in 1932, and additional payments received under provision (c) of that contract, during the years 1931 to 1935, inclusive, were proceeds from the sale of capital assets or whether they were ordinary income, and, if they were not proceeds from the sale of capital…
2Cases cited12 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Helvering v. HallockSupreme Court of the United States · 1940
- Palmer v. BenderSupreme Court of the United States · 1932
- Thomas v. PerkinsSupreme Court of the United States · 1937
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
7 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Farwell v. CommissionerUnited States Tax Court · 1960
- Exxon Corp. v. CommissionerUnited States Tax Court · 1994
- Commissioner of Internal Revenue v. BettsCourt of Appeals for the Seventh Circuit · 1941
- McLean v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1941
- Callahan Mining Corp. v. CommissionerUnited States Tax Court · 1969
10 more not listed; retrieve them via the Exa API.