Murchison v. Commissioner
United States Board of Tax Appeals
Where a right to royalty of oil produced is reserved in an assignment of a lease covering oil land, the lessee-assignor is entitled to take depletion as a deduction. Palmer v. Bender,287 U.S. 551.
1Opinion of the Court
OPINION.
Seawell:
The respondent determined a deficiency of $415.89 in income tax for 1929, resulting, in part, from his disallowance as a deduction of depletion equal to 27% percent of the amount received from the sale of royalty oil. The issue is whether or not the petitioner is entitled to the depletion deduction. The case was submitted on a stipulation of facts, which we incorporate herein by reference as our findings of fact.
It appears from the stipulation that in 1924 A. H. Murchison and E. H. Pigg obtained an oil and gas lease of certain unimproved lands in Wilbarger County, Texas.…
2Cases cited2 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Glide v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by3 opinions
- Simms v. CommissionerUnited States Board of Tax Appeals · 1933
- Murchison v. CommissionerUnited States Board of Tax Appeals · 1933
- Simms v. CommissionerUnited States Board of Tax Appeals · 1933