Texas Pipeline Co. v. Commissioner
United States Board of Tax Appeals
1. A taxpayer is not entitled, under section 204(c)(1) of the Revenue Act of 1926, to compute depletion of a sulphur mine on the basis of the discovery value to its predecessor in title. 2. The evidence does not sustain respondent's affirmative claim for the disallowance of a deduction of the cost to petitioner of maintaining a "stock investment or profit-sharing plan" by which part of petitioner's employees were permitted, through a trustee, to purchase certain stock at…
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1. A taxpayer is not entitled, under section 204(c)(1) of the Revenue Act of 1926, to compute depletion of a sulphur mine on the basis of the discovery value to its predecessor in title. 2. The evidence does not sustain respondent's affirmative claim for the disallowance of a deduction of the cost to petitioner of maintaining a "stock investment or profit-sharing plan" by which part of petitioner's employees were permitted, through a trustee, to purchase certain stock at less than its fair market value, said deduction having been previously allowed by the Commissioner.
1Opinion of the Court
OPINION.
Van Fossan :
This proceeding was brought to redetermine a deficiency in the income tax of the petitioner for the year 1927 in the sum of $51,374.26.
The issues are:(1) Whether or not the Texas Co. (of Delaware), an affiliate of the petitioner, is entitled to deduct an allowance for the depletion of a sulphur mine based on the discovery value thereof created by its predecessor in title, also an affiliate of the petitioner.(2) Whether or not the Texas Co. may deduct as an expense the sum of $315,518.52 representing the excess cost of certain stock pur-, chased under an employees’ stock…
2Cited by5 opinions
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- Texas Pipeline Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- W. T. Grant Co. v. CommissionerUnited States Tax Court · 1972