John Province 1 Well v. Commissioner
United States Tax Court
Petitioners are several gas wells drilled on leaseholds obtained by J. O. Boyle, who made assignments of fractional interests in the wells in return for funds supplied to him by the assignees. Boyle retained all managerial rights, including the sole authority to sell the gas produced. Boyle also retained fractional interests in the respective wells. Held, petitioners are associations taxable as corporations.
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Petitioners are several gas wells drilled on leaseholds obtained by J. O. Boyle, who made assignments of fractional interests in the wells in return for funds supplied to him by the assignees. Boyle retained all managerial rights, including the sole authority to sell the gas produced. Boyle also retained fractional interests in the respective wells. Held, petitioners are associations taxable as corporations. Held, further, the incomes of petitioners include the entire receipts derived from sales of gas from the wells.
1Opinion of the Court
Bruce, Judge:
The respondent determined deficiences in income tax of petitioners in the years and amounts as follows:
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The parties have stipulated that the dividend issue raised in Docket No. 78164 is to be decided consistently with our determination of the issues raised by Docket Nos. 78153 through 78160 and Docket No. 78163. They have stipulated further that the petitioners in Docket No. 78164 incurred net operating losses in stipulated amounts in 1956 and 1957, which are available for carryback to said petitioners’ taxable year 1955.
Two issues remain for our consideration: (1)…
2Cases cited21 opinions
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Hecht v. MalleySupreme Court of the United States · 1924
- Burk-Waggoner Oil Assn. v. HopkinsSupreme Court of the United States · 1925
- Smith v. CommissionerUnited States Tax Court · 1959
- Commissioner of Internal Rev. v. Horseshoe L. SyndicateCourt of Appeals for the Fifth Circuit · 1940
16 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Larson v. CommissionerUnited States Tax Court · 1976
- Di Portanova v. United StatesUnited States Court of Claims · 1982
- Bush 1 c/o Stonestreet Lands Co. v. CommissionerUnited States Tax Court · 1967
- John Provence 1 Well v. CommissionerCourt of Appeals for the Third Circuit · 1963
- John Provence #1 Well v. Commissioner Of Internal RevenueCourt of Appeals for the Third Circuit · 1963
6 more not listed; retrieve them via the Exa API.