Linebery v. Commissioner
United States Tax Court
Held, petitioners' monthly receipts, measured by a percentage of the amounts received by Shell Oil Co. from the sale of water transported through pipelines laid on right-of-way across petitioners' land, are taxable as ordinary income. Held, further, amounts received by petitioners from the extraction of caliche under terminable agreements calling for payments measured by production are taxable as ordinary income.
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Held, petitioners' monthly receipts, measured by a percentage of the amounts received by Shell Oil Co. from the sale of water transported through pipelines laid on right-of-way across petitioners' land, are taxable as ordinary income. Held, further, amounts received by petitioners from the extraction of caliche under terminable agreements calling for payments measured by production are taxable as ordinary income. Held, further, value of a lot and building contributed to an exempt educational organization determined.
1Opinion of the Court
Featherston, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax for 1967, 1968, and 1969 as follows:
Year Deficiency
1967_ $6,038.16
1968_ 5,001.86
1969_ 9,556.29
Certain concessions having been made, the issues remaining for decision are as follows:(1) Whether amounts received by petitioners from Shell Oil Co. for water rights and a right-of-way under an agreement executed in 1963 are taxable as ordinary income or as capital gain.(2) Whether amounts received by petitioners from the extraction of caliche pursuant to conveyances executed in 1959 and 1960 are taxable as…
2Cases cited12 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Anderson v. HelveringSupreme Court of the United States · 1940
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Nathaniel C. Wood and Gertrude L. Wood v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Earl Vest and Fay Vest, Petitioners-Appellees-Cross v. Commissioner of Internal Revenue, Respondent-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
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3Cited by1 opinion
- Linebery v. CommissionerUnited States Tax Court · 1975