Geoghegan & Mathis, Inc. v. Commissioner
United States Tax Court
In 1959, taxpayer, an open-pit mining operator, acquired the fee title to a tract of land, containing commercially marketable limestone deposits, subject to a right-of-way for an existing gas pipeline. During the taxable year, taxpayer, in order to continue operations, obtained the release of the right-of-way in exchange for an alternative right-of-way and payment of the expenses of relocating the pipeline.
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In 1959, taxpayer, an open-pit mining operator, acquired the fee title to a tract of land, containing commercially marketable limestone deposits, subject to a right-of-way for an existing gas pipeline. During the taxable year, taxpayer, in order to continue operations, obtained the release of the right-of-way in exchange for an alternative right-of-way and payment of the expenses of relocating the pipeline. Held, such expenses constitute part of the cost of the mineral rights and are not currently deductible as development expenditures under sec. 616(a) or as ordinary and necessary business…
1Opinion of the Court
Geoghegan & Mathis, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Geoghegan & Mathis, Inc. v. Commissioner
Docket No. 1295-68
United States Tax Court
55 T.C. 672; 1971 U.S. Tax Ct. LEXIS 196;
January 27, 1971, Filed
Decision will be entered under Rule 50.
In 1959, taxpayer, an open-pit mining operator, acquired the fee title to a tract of land, containing commercially marketable limestone deposits, subject to a right-of-way for an existing gas pipeline. During the taxable year, taxpayer, in order to continue operations, obtained the release of the right-of-way in exchange for an…
2Cases cited24 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Commissioner of Internal Revenue v. RayCourt of Appeals for the Fifth Circuit · 1954
- Ray v. CommissionerUnited States Tax Court · 1952
- Hotel Sulgrave, Inc. v. CommissionerUnited States Tax Court · 1954
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