Thornberry Construction Co. v. United States

I am not persuaded that plaintiff has carried its burden of proving that, during its fiscal year ended March 31, 1974, and for purposes of I.R.C. § 611, it owned an "economic interest” (as distinguished from an "economic advantage”) in the No. 9 coal in place under the lease from AMAX to James R. Thornberry, as limited under the *211March 1, 1973, assignment from James R. Thornberry to plaintiff.

Pursuant to I.R.C. § 611(a), Treasury promulgated Regulation § 1.611 — 1(b)(1), defining "economic interest” thus:

An economic interest is possessed in every case in which the taxpayer has acquired by…