H. M. Holloway, Inc. v. Commissioner
United States Tax Court
Depletion -- Discovery Value, Sections 23 (m) and 114 (b) (2), I. R. C. -- The petitioner is engaged in the business of exploring for, mining, and selling gypsum. The evidence establishes (1) that the petitioner made a discovery of a gypsum deposit; (2) the date of its discovery; (3) the fair market value of the property on the date of discovery; and (4) that the fair market value of the property on the date of discovery was materially disproportionate to the cost.
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Depletion -- Discovery Value, Sections 23 (m) and 114 (b) (2), I. R. C. -- The petitioner is engaged in the business of exploring for, mining, and selling gypsum. The evidence establishes (1) that the petitioner made a discovery of a gypsum deposit; (2) the date of its discovery; (3) the fair market value of the property on the date of discovery; and (4) that the fair market value of the property on the date of discovery was materially disproportionate to the cost. Held, petitioner is entitled to the allowance of depletion deductions based upon discovery value.
1Opinion of the Court
H. M. Holloway, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
H. M. Holloway, Inc. v. Commissioner
Docket No. 26737
United States Tax Court
21 T.C. 40; 1953 U.S. Tax Ct. LEXIS 51;
October 12, 1953, Promulgated
Decision will be entered under Rule 50.
Depletion -- Discovery Value, Sections 23 (m) and 114 (b) (2), I. R. C. -- The petitioner is engaged in the business of exploring for, mining, and selling gypsum. The evidence establishes (1) that the petitioner made a discovery of a gypsum deposit; (2) the date of its discovery; (3) the fair market value of the property on the date…
2Cases cited3 opinions
- Reinecke v. SpaldingSupreme Court of the United States · 1930
- Sidwell v. CommissionerUnited States Tax Court · 1948
- H. M. Holloway, Inc. v. CommissionerUnited States Tax Court · 1953