Cockburn v. Commissioner
United States Tax Court
Petitioners were the owners of a certain oil and gas lease in Texas on which had been developed 19 producing oil wells and one gas well. In 1942, petitioners assigned their interests in the property to another for a cash consideration and, in addition thereto, an overriding royalty of 3/32nds of all oil and gas produced on the lease and a contingent oil payment of $ 112,500 out of oil to be produced on the lease.
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Petitioners were the owners of a certain oil and gas lease in Texas on which had been developed 19 producing oil wells and one gas well. In 1942, petitioners assigned their interests in the property to another for a cash consideration and, in addition thereto, an overriding royalty of 3/32nds of all oil and gas produced on the lease and a contingent oil payment of $ 112,500 out of oil to be produced on the lease. Of the cash consideration received, $ 95,000 was allocated to the sale price of the physical equipment on the lease and is not in controversy. The Commissioner in his determination…
1Opinion of the Court
OPINION.
Black, Judge:
The stipulated facts show, among other things, that petitioners reported on their returns for the year 1942 the receipt of $291,250 ($386,250 minus $95,000) as being income from “sale price of lease” and reduced this figure by claimed expenses of sale aggregating $16,387.10. After deducting this $16,387.10 as expenses of sale, petitioner reported $274,862.90 as long term capital-gain from this part of the transaction. Petitioners now abandon their contention that the $274,862.90 was capital gain.
This abandonment by petitioners of their former position in this respect is…
2Cases cited5 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Hogan v. CommissionerCourt of Appeals for the Fifth Circuit · 1944
- Lee v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Munger v. CommissionerUnited States Tax Court · 1950
3Cited by5 opinions
- Estate of Boyd v. CommissionerUnited States Tax Court · 1981
- Cowden v. CommissionerCourt of Appeals for the Fifth Circuit · 1961
- Frank Cowden, Sr., and Wife Gladys Cowden, Petitioner-Respondent v. Commissioner of Internal Revenue, Respondent-Petitioner, Commissioner of Internal Revenue, Respondent-Petitioner v. Frank Cowden, Sr., and Wife Gladys Cowden, Petitioner-RespondentCourt of Appeals for the Fifth Circuit · 1961
- Cockburn v. CommissionerUnited States Tax Court · 1951
- Estate of Boyd v. CommissionerUnited States Tax Court · 1981