Lesher v. Commissioner
United States Tax Court
Held: 1. Petitioners retained an economic interest in the gravel in place under the contract they had with Maudlin for removal of the gravel necessary to supply two county road projects and another county's requirements for a payment of 25 cents per ton as weighed by the county authorities, and therefore income from the gravel is ordinary income subject to depletion; and 2. A Morton general purpose farm facility erected and modified by petitioners which consisted primarily…
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Held: 1. Petitioners retained an economic interest in the gravel in place under the contract they had with Maudlin for removal of the gravel necessary to supply two county road projects and another county's requirements for a payment of 25 cents per ton as weighed by the county authorities, and therefore income from the gravel is ordinary income subject to depletion; and 2. A Morton general purpose farm facility erected and modified by petitioners which consisted primarily of a space 50 by 80 feet enclosed on three sides for storage of hay and feeding of cattle is not a facility for the bulk…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for the calendar years 1974 and 1975 in the amounts of $2,868.16 and $1,629.35, respectively.
The issues for decision are: (1) Whether payments received by petitioners from a contractor for removal of gravel from certain tracts of petitioners’ farm constitute ordinary income subject to depletion under sections 611 and 613, I.R.C. 1954,1 or long-term capital gains under section 1221; and (2) whether a structure placed by petitioners on their farm qualifies as a “storage facility” within the meaning of section…
2Cases cited30 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Helvering v. Elbe Oil Land Development Co.Supreme Court of the United States · 1938
- Kirby Petroleum Co. v. CommissionerSupreme Court of the United States · 1946
25 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Consolidated Freightways, Inc. & Affiliates v. CommissionerUnited States Tax Court · 1980
- Davis v. CommissionerUnited States Tax Court · 1980
- Valmont Industries, Inc. v. CommissionerUnited States Tax Court · 1980
- Munford, Inc. v. CommissionerUnited States Tax Court · 1986
- Deskins v. CommissionerUnited States Tax Court · 1986
13 more not listed; retrieve them via the Exa API.