Ridley v. Commissioner
United States Tax Court
Petitioners granted Monsanto the right to mine phosphate from a deposit that promised to yield 116,000 tons in consideration of an advance royalty payment of $ 20,000 payable, whether or not any ore was removed, in 3 fixed annual installments plus 40 cents per ton for each additional ton removed over 50,000. Held, petitioners retained an economic interest in the phosphate, and the contract constitutes a mineral lease and not a sale of a capital asset.
1Opinion of the Court
Campbell P. Ridley and Evelyn S. Ridley, Petitioners v. Commissioner of Internal Revenue, Respondent
Ridley v. Commissioner
Docket No. 1814-71
United States Tax Court
58 T.C. 439; 1972 U.S. Tax Ct. LEXIS 109;
June 8, 1972, Filed
Decision will be entered under Rule 50.
Petitioners granted Monsanto the right to mine phosphate from a deposit that promised to yield 116,000 tons in consideration of an advance royalty payment of $ 20,000 payable, whether or not any ore was removed, in 3 fixed annual installments plus 40 cents per ton for each additional ton removed over 50,000. Held, petitioners retained…
2Cases cited8 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Nathaniel C. Wood and Gertrude L. Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Louis Rabiner and Lena Rabiner, Husband and Wife v. Ernest W. Bacon, Director of Internal RevenueCourt of Appeals for the Eighth Circuit · 1967
- Day v. CommissionerUnited States Tax Court · 1970
- Rose v. CommissionerUnited States Tax Court · 1971
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