Mother Lode Coalition Mines Co. v. Commissioner

The ultimate question presented by this case is whether petitioner is entitled to a deduction in its 1935 income tax return for percentage depletion under § 114 (b) (4) of the Revenue Act of 1934, 48 Stat. 680, which allowed the deduction from, gross income in the case of mines, etc., of specified percentages of gross income, but not to exceed 50% of the net income computed without regard to depletion allowance, and required that:

“A taxpayer making his first return under this title in respect of a property shall state whether he elects to have the depletion allowance for such property for the…