Olinger v. Commissioner
United States Tax Court
In 1951, petitioner, a widow 74 years old, transferred her entire fee interest in the surface and iron ore rights of certain properties and received as payment therefor the sum of $ 202,500. The grantee estimated that the properties contained 800,000 tons of iron ore.
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In 1951, petitioner, a widow 74 years old, transferred her entire fee interest in the surface and iron ore rights of certain properties and received as payment therefor the sum of $ 202,500. The grantee estimated that the properties contained 800,000 tons of iron ore. The instrument effecting the transfer provided that if within 50 years iron ore in excess of 800,000 tons was mined from the property, petitioner would receive in addition 25 cents a ton for such excess tonnage. Held, such transfer constituted a sale and that the sum of $ 202,500 received by petitioner in 1951 was in payment for…
1Opinion of the Court
OPINION.'
KeRn, Judge:
The question presented in this case is whether the payment of $202,500 received by petitioner in 1951 was an advance royalty under a mining lease, as determined by respondent, or was gain realized from the sale of a capital asset, as contended by petitioner. The solution of this question requires us to consider whether the trans-' action evidenced by the written instrument dated October 5, 1951, described in our findings, effected a leasing arrangement of the property for which the payment was made, or a sale thereof. “In construing the contract we may look not only to…
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- Palmer v. BenderSupreme Court of the United States · 1932
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- Helvering v. Elbe Oil Land Development Co.Supreme Court of the United States · 1938
- Crowell Land & Mineral Corp. v. CommissionerUnited States Tax Court · 1955
- West v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1945
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3Cited by18 opinions
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- Commissioner of Internal Revenue v. Charles H. Remer and Dorothy A. RemerCourt of Appeals for the Eighth Circuit · 1958
- Vest v. CommissionerUnited States Tax Court · 1971
- Day v. CommissionerUnited States Tax Court · 1970
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