Barnsley v. Commissioner
United States Tax Court
Taxpayer received cash and negotiable notes payable over a term of years having a fair market value as advance royalties or bonuses on execution in 1953 as lessor of an oil and gas lease for a primary term of 10 years.
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Taxpayer received cash and negotiable notes payable over a term of years having a fair market value as advance royalties or bonuses on execution in 1953 as lessor of an oil and gas lease for a primary term of 10 years. Held, the fair market value of the notes constituted taxable income in 1953. Held, further, the transaction did not qualify as a sale or other disposition of personalty or real estate entitling taxpayer to report on the installment basis provided in section 44(b), I.R.C. 1939.
1Opinion of the Court
OPINION.
Tintjens, Judge:
The Commissioner determined deficiencies in income tax of $70,152.85 and $47,449.05 for the years 1953 and 1954, respectively.
The only issue for decision is whether petitioner properly may report amounts received as advance royalties or bonuses in the form of cash and negotiable notes on an oil and gas lease for a primary period of 10 years executed July 17, 1953, on the installment basis or must report the total bonus in 1953.
All of the facts have been stipulated and the stipulated facts are incorporated herein and found as facts.
Petitioner is an individual with his…
2Cases cited6 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Herring v. CommissionerSupreme Court of the United States · 1934
- Kleberg v. CommissionerUnited States Board of Tax Appeals · 1941
- Estate of Webb v. CommissionerUnited States Tax Court · 1958
- Albert J. Fihe and Elizabeth Fihe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
1 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Estate of Scharf v. CommissionerUnited States Tax Court · 1962
- Kingsbury v. CommissionerUnited States Tax Court · 1976
- Sirbo Holdings, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1973
- Cowden v. CommissionerCourt of Appeals for the Fifth Circuit · 1961
- Cowden v. CommissionerUnited States Tax Court · 1959
18 more not listed; retrieve them via the Exa API.