Cokes v. Commissioner
United States Tax Court
Petitioner owned 0.422900 of the total working interest in certain real property. A working interest is a leasehold interest granted by the fee simple owner of land to explore for and extract oil from the land. Petitioner entered into agreements with the other working interest owners and an operator whereby the operator exploited the working interest for the owners.
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Petitioner owned 0.422900 of the total working interest in certain real property. A working interest is a leasehold interest granted by the fee simple owner of land to explore for and extract oil from the land. Petitioner entered into agreements with the other working interest owners and an operator whereby the operator exploited the working interest for the owners. Held, petitioner was a member of a partnership, or a joint venture taxable as a partnership, and is liable for self-employment taxes on her distributive share of partnership trade or business income. Sec. 1402(a), I.R.C. 1954.
1Opinion of the Court
CHABOT, Judge:
Respondent determined deficiencies in Federal individual income taxes against petitioner as follows:
Year Deficiency1
1980. $2,151.51
1981. 2,762.10
1982. 3,029.40
Because petitioner conceded in her petition the item causing the chapter 1 portion of the deficiency for 1980, the issue for decision is whether petitioner’s income from an oil and gas working interest in 1980, 1981, and 1982, is subject to the self-employment taxes provided by section 1401..
FINDINGS OF FACT
Some of the facts have been stipulated; the stipulation and the stipulated exhibits are incorporated herein by this…
2Cases cited10 opinions
- Commissioner v. HansenSupreme Court of the United States · 1959
- Madison Gas and Electric Company v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1980
- Madison Gas & Electric Co. v. CommissionerUnited States Tax Court · 1979
- Estate of Coon v. CommissionerUnited States Tax Court · 1983
- Olin Bryant and Vanell Bryant v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
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