Beck v. Commissioner
United States Tax Court
1. Fair market value of petitioner's interest in iron ore lands determined as of March 2, 1919. 2. Held, the respondent did not err in applying the "dilution theory" in section 23 (m), I. R. C., in reducing the petitioner's allowance for depletion. 3. Under the terms of a compromise agreement by which petitioner acquired iron ore lands and cash from the estate of her father, it was provided that petitioner would pay the proportionate share of Federal estate and State…
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1. Fair market value of petitioner's interest in iron ore lands determined as of March 2, 1919. 2. Held, the respondent did not err in applying the "dilution theory" in section 23 (m), I. R. C., in reducing the petitioner's allowance for depletion. 3. Under the terms of a compromise agreement by which petitioner acquired iron ore lands and cash from the estate of her father, it was provided that petitioner would pay the proportionate share of Federal estate and State inheritance taxes. It was further provided in the agreement that the trustee (under the will of petitioner's father) would…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question is the determination, for the purpose of computing depletion, of the fair market value of the petitioner’s interest in the iron ore lands as of March 2, 1919, when she inherited it.
The petitioner, as owner of a one-sixth interest in the iron ore lands, reported a proportionate share of the royalty payments in her tax returns and took a deduction on her share of a depletion allowance of $.1018 per ton of ore. Beginning with the taxable year 1988 through the taxable year 1941. the respondent disallowed a portion of the deduction for depletion taken…
2Cases cited13 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. TowerSupreme Court of the United States · 1946
- Blair v. CommissionerSupreme Court of the United States · 1937
8 more not listed; retrieve them via the Exa API.
3Cited by57 opinions
- Frank v. CommissionerUnited States Tax Court · 1953
- Walet v. CommissionerUnited States Tax Court · 1958
- Reed v. CommissionerUnited States Tax Court · 1970
- Kasey v. CommissionerUnited States Tax Court · 1970
- Epp v. CommissionerUnited States Tax Court · 1982
52 more not listed; retrieve them via the Exa API.