James Petroleum Corp. v. Commissioner
United States Tax Court
1. Held, that a royalty interest owned by petitioner became worthless prior to 1944 when petitioner's right of redemption therein expired and that its loss with respect to the royalty is therefore not deductible in that year. 2. Held, that $ 1,179.33 of $ 3,537.98 expended by petitioner for legal services in a lawsuit and subsequent settlement was attributable to its claim for an accounting and is deductible. 3. Held, on the facts, that depletion allowable on an oil lease in…
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1. Held, that a royalty interest owned by petitioner became worthless prior to 1944 when petitioner's right of redemption therein expired and that its loss with respect to the royalty is therefore not deductible in that year. 2. Held, that $ 1,179.33 of $ 3,537.98 expended by petitioner for legal services in a lawsuit and subsequent settlement was attributable to its claim for an accounting and is deductible. 3. Held, on the facts, that depletion allowable on an oil lease in Kentucky computed by the cost method was greater than allowed depletion as computed by petitioner by the percentage of…
1Opinion of the Court
OPINION.
TURNER, Judge:
Petitioner claimed a loss in 1944 on a royalty interest which it was alleged became worthless in that year due to the expiration of petitioner’s right to redeem the property under Oklahoma law. The royalty was purchased by petitioner in 1929. In 1930 it was offered for sale at a public auction and was purchased by Grace Gilbreath, who took the property and paid the taxes thereon until 1942, at which time she caused to be served upon all interested parties a “Notice of Application for Tax Deed,” pursuant to title 68, section 451, of the Oklahoma Statutes, which provides…
2Cases cited6 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Commissioner v. HarmonSupreme Court of the United States · 1944
- Rhodes v. CommissionerCourt of Appeals for the Sixth Circuit · 1939
- Harmon v. CommissionerUnited States Tax Court · 1942
1 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Estate of Arnett v. CommissionerUnited States Tax Court · 1958
- Malcolm J. Henley and Mary K. Henley v. The United StatesUnited States Court of Claims · 1968
- James Petroleum Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1956
- Estate of Steckel v. CommissionerUnited States Tax Court · 1956
- Corra Resources, Ltd. v. CommissionerUnited States Tax Court · 1990
6 more not listed; retrieve them via the Exa API.