Opine Timber Co. v. Commissioner
United States Tax Court
Held: 1. "Delay rentals" paid under a standard oil, gas, and mineral lease are "rents" within the meaning of sec. 1372(e)(5), I.R.C. 1954, and petitioner's election to be taxed as a small business corporation terminated under that section in its fiscal year ending Sept. 30, 1963, when over 20 percent of its gross receipts was from "delay rentals." 2. Petitioner's election filed on Form 2553 on May 31, 1974, to be taxed under sec. 1372(a) which stated that the election was…
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Held: 1. "Delay rentals" paid under a standard oil, gas, and mineral lease are "rents" within the meaning of sec. 1372(e)(5), I.R.C. 1954, and petitioner's election to be taxed as a small business corporation terminated under that section in its fiscal year ending Sept. 30, 1963, when over 20 percent of its gross receipts was from "delay rentals." 2. Petitioner's election filed on Form 2553 on May 31, 1974, to be taxed under sec. 1372(a) which stated that the election was retroactive to Oct. 1, 1968, was not effective for its fiscal years ending Sept. 30, 1969, 1970, and 1971, even though…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined deficiencies in petitioner’s Federal corporate income tax for its fiscal years ending September 30, 1969, 1970, and 1971 in the amounts of $70,057.43, $53,814.85, and $20,644.72, respectively.
The issues for our decision are (1) whether petitioner’s election in 1958 to be taxed as a small business corporation under section 1372,1.R.C. 1954,1 was terminated and, if so, the year for which the termination was effective; (2) whether petitioner’s election in 1974 to be taxed as a small business corporation was valid and, if so, was this election retroactive…
2Cases cited29 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Duffy v. Central R. Co. of NJSupreme Court of the United States · 1925
- George R. Tollefsen and Margaret A. Tollefsen v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1970
- McFaddin v. CommissionerUnited States Tax Court · 1943
- Commissioner of Internal Revenue v. WilsonCourt of Appeals for the Fifth Circuit · 1935
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3Cited by14 opinions
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- Morehouse v. CommissionerUnited States Tax Court · 2013
- Garavaglia v. Comm'rUnited States Tax Court · 2017
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