Nunn-Stubblefield Oil Co. v. Commissioner
United States Board of Tax Appeals
The petitioner expended certain amounts for labor, teaming, hauling, supplies, fuel, water, etc., in connection with the drilling of an oil well on land owned by another or others, in consideration of which it received an interest in an oil and gas lease. Held, that the petitioner was not entitled, under the provisions of article 243 of Regulations 74, to deduct such amounts as operating expenses in determining taxable net income.
1Opinion of the Court
OPINION.
Trammell:
This proceeding is for the redetermination of a deficiency in income tax of $1,543.38 for 1929. The only issue presented for determination is whether the petitioner- is entitled to a deduction from gross income of an amount of $17,282.06 represent-, ing expenditures for drilling-made during the taxable year in connection with a certain oil lease.
The petitioner is a Texas corporation, organized February 12,1927, with its principal place of business at Amarillo. The business of the petitioner is that of producing and selling oil and gas.
On June 7, 1924, the Roxana Petroleum…
2Cited by6 opinions
- Edwards Drilling Co. v. CommissionerUnited States Board of Tax Appeals · 1937
- Hardesty v. CommissionerUnited States Board of Tax Appeals · 1941
- Hugh Hodges Drilling Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- LeSuer v. CommissionerUnited States Tax Court · 1943
- Nunn-Stubblefield Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1934
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