O'Connor v. Commissioner
United States Tax Court
Petitioners O'Connor entered into an agreement with petitioner Bush which purports to be a lease to Bush of a portion of land for the purpose of mining clay to be used by Bush to manufacture bricks. Petitioners O'Connor claim that this was a sale resulting in capital gain treatment. Petitioner Bush claims that this was a lease and that it is entitled to depletion on the clay mined.
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Petitioners O'Connor entered into an agreement with petitioner Bush which purports to be a lease to Bush of a portion of land for the purpose of mining clay to be used by Bush to manufacture bricks. Petitioners O'Connor claim that this was a sale resulting in capital gain treatment. Petitioner Bush claims that this was a lease and that it is entitled to depletion on the clay mined. The Commissioner determined that the petitioners O'Connor received ordinary income from the lease of clay deposits but that petitioner Bush was not entitled to depletion because it did not acquire an economic…
1Opinion of the Court
Goffe, Judge:
The above docketed cases were consolidated for trial, briefs, and opinion because their issues for decision involve a common transaction. The Commissioner determined deficiencies in Federal income tax together with additions to such tax as follows:
TYE Additions to tax
Docket No. Dec. 31— Deficiency Sec. 6651(a)(1)2 Sec. 6653
3483-78 1971 $8,336.67 $2069.55 0
1972 11,927.07 0 0
1973 18,848.68 0 $942.43
3484-78 1974 18,729.74 0 936.49
3485-78 1974 3,101.00 0 0
381-791 1971 17,103.00 0 0
1973 15,925.66 0 0
1975 694.00 0 0
There are two issues for decision: (1) Whether certain payments made by…
2Cases cited22 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Bankers Pocahontas Coal Co. v. BurnetSupreme Court of the United States · 1932
- Nathaniel C. Wood and Gertrude L. Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Tennessee Valley Kaolin Corp. v. PerryCourt of Appeals of Tennessee · 1974
17 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Deskins v. CommissionerUnited States Tax Court · 1986
- Husky Oil Co. v. CommissionerUnited States Tax Court · 1984
- Deskins v. CommissionerUnited States Tax Court · 1986
- Husky Oil Co. v. CommissionerUnited States Tax Court · 1984
- O'Connor v. CommissionerUnited States Tax Court · 1982