Robinson v. Commissioner
United States Board of Tax Appeals
In the development of a coal mine acquired subsequent to March 1, 1913, the petitioner found after carrying on mining operations that the coal deposit was more valuable than was known to exist at the date of purchase. Held, that the petitioner is not entitled to revalue the estimated coal content and to base a depletion deduction upon such enhanced value rather than on the cost.
1Opinion of the Court
*779OPINION.
Smith :
The petitioner alleges error on the part of the respondent in determining deficiencies in income and profits tax for the years *7801917 and 1918 on the ground that he has refused to allow a discovery value as a basis for computing depletion.
The Revenue Act of 1916 permits an individual to deduct from gross income in his income-tax return, under subdivision eighth of section 5 thereof, the following:
* * * (b) in the case of mines a reasonable allowance for depletion thereof not to exceed the market value in the mine of the product thereof, which has been mined and sold during…
2Cases cited11 opinions
- Iron Silver Mining Co. v. CheesmanSupreme Court of the United States · 1886
- Iron Silver Mining Co. v. Mike & Starr Gold & Silver Mining Co.Supreme Court of the United States · 1892
- Fitzgerald v. ClarkMontana Supreme Court · 1895
- Grand Central Min. Co. v. Mammoth Min. Co.Utah Supreme Court · 1905
- Cheesman v. ShreeveU.S. Circuit Court for the District of Colorado · 1889
6 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Hecla Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1937
- Robinson v. CommissionerUnited States Board of Tax Appeals · 1927