Grison Oil Corp. v. Commissioner
United States Board of Tax Appeals
In determining the 50 percent limitation on percentage depletion allowable under section 114(b)(3), Revenue Act of 1936, amounts of income tax paid to the State of Oklahoma must be deducted in computing net income from the property, where such state tax was based wholly on income derived from such property.
1Opinion of the Court
*1119OPINION.
TTtt.t. :
The question before us in this case is whether or not respondent erred in deducting from gross income the amounts of income tax paid by petitioner to the State of Oklahoma, in order to determine the net income from petitioner’s oil property for depletion purposes, pursuant to section 114 (b) (3) of the Revenue Act of 1936. The statute provides that in the case of oil and gas wells the allowance for depletion shall be 27½ percent of the gross income from the property, but that such allowance shall not exceed 50 percent of the net income of the taxpayer (computed without…
2Cases cited1 opinion
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
3Cited by5 opinions
- Sheridan-Wyoming Coal Co. v. HelveringCourt of Appeals for the D.C. Circuit · 1941
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964
- Daube v. Oklahoma Tax CommissionSupreme Court of Oklahoma · 1957
- Grison Oil Corp. v. CommissionerUnited States Board of Tax Appeals · 1940
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964