Twin Bell Oil Syndicate v. Commissioner
United States Board of Tax Appeals
1. Petitioner held to be an association taxable as a corporation for the years 1925, 1926 and 1927. 2. The reasonable allowance for depletion authorized as a deduction under the 1926 Act, in the case of oil and gas wells, is required to be equitably apportioned between lessor and lessee in case of leases.
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1. Petitioner held to be an association taxable as a corporation for the years 1925, 1926 and 1927. 2. The reasonable allowance for depletion authorized as a deduction under the 1926 Act, in the case of oil and gas wells, is required to be equitably apportioned between lessor and lessee in case of leases. The basis for determining such reasonable allowance, prescribed in section 204(c)(2), is 27 1/2 per cent of gross income from the property, and such reasonable allowance so determined is required to be apportioned equitably between lessor and lessee. 3. Total cost of oil wells drilled under…
1Opinion of the Court
*175OPINION.
Matthews:
1. The first question is whether in 1925, 1926 and 1927 the petitioner must be regarded as a trust or as an association. For the years here involved petitioner may not avail itself of section 704(a) of the Revenue Act of 1928 as it did in the proceeding for the prior years 1922 and 1923, Docket No. 29518, and the tests to be applied in distinguishing a trust from an association must be those which this Board and the courts have found applicable in 1925 and subsequent years.
The Commissioner amended article 1504 in his Regulations 65 (Revenue Act of 1924), distinguishing a…
2Cited by8 opinions
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- Ray Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Brooklyn Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1935
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