Legal Opinion

McClelland v. Commissioner

United States Tax Court

Decided December 20, 1984No. Docket Nos. 7629-79, 7630-79PublishedCited by 1 opinion

Ps are partners in S, a coal mining venture. Pursuant to a coal lease, S strip mined coal and loaded it into the trucks of independent contractors. The truckers hauled the coal over the "bench" and over private and public roads to the premises of C, S's purchaser. The truck drivers unloaded the coal into a dumping bin, at the bottom of which was a stationary steel grate.

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Ps are partners in S, a coal mining venture. Pursuant to a coal lease, S strip mined coal and loaded it into the trucks of independent contractors. The truckers hauled the coal over the "bench" and over private and public roads to the premises of C, S's purchaser. The truck drivers unloaded the coal into a dumping bin, at the bottom of which was a stationary steel grate. On virtually each trip, the truck driver used a sledge hammer or pickax to force a few oversize or jammed pieces of coal through the steel grate. Thereafter, C applied to the purchased coal one or more of the coal mining…

1Opinion of the Court

Parker, Judge:

Respondent determined deficiencies in petitioners’ 1975 Federal income taxes in the amounts of $53,951.77 in docket No. 7629-79 and $53,951.77 in docket No. 7630-79. After a concession, the issue for decision is whether, in determining "gross income from mining” under section 613(c)(1) and (2)1 for purposes of computing their percentage depletion deductions for coal, petitioners (mine operators) may include expenses to transport the coal from the mine site to the plant where their purchaser processed the coal.

FINDINGS OF FACT

Most of the facts have been stipulated and are so…

2Cases cited30 opinions

  1. Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
  2. Bob Jones University v. United StatesSupreme Court of the United States · 1983
  3. United States v. Paramount Pictures, Inc.Supreme Court of the United States · 1948
  4. Dixon v. United StatesSupreme Court of the United States · 1965
  5. Federal Maritime Commission v. Seatrain Lines, Inc.Supreme Court of the United States · 1973

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3Cited by1 opinion

  1. McClelland v. CommissionerUnited States Tax Court · 1984

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