Wendland v. Commissioner
United States Tax Court
Petitioners were limited partners in TCR, a partnership that was formed in 1976 to engage in coal mining. On Dec. 31, 1976, TCR paid $ 3 million to GSA to acquire, among other things, a number of valuable assets that were necessary to the mining operation, including coal leases, a mining agreement, and a coal supply agreement. The payment consisted of $ 650,000 cash and a $ 2,350,000 nonrecourse note.
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Petitioners were limited partners in TCR, a partnership that was formed in 1976 to engage in coal mining. On Dec. 31, 1976, TCR paid $ 3 million to GSA to acquire, among other things, a number of valuable assets that were necessary to the mining operation, including coal leases, a mining agreement, and a coal supply agreement. The payment consisted of $ 650,000 cash and a $ 2,350,000 nonrecourse note. Petitioners contend that the entire $ 3 million was payment of advanced royalty and claimed a deduction under sec. 1.612-3(b)(3), Income Tax Regs., as it read prior to its retroactive amendment,…
1Opinion of the Court
Sterrett, Judge:
By statutory notices dated March 24, 1980,2 respondent determined deficiencies in petitioners’ income taxes for the taxable years ended December 31, 1973, December 31,1976, and December 31,1977, as follows:
Docket No. Petitioner Year Deficiency
5708-80 Robert P. Wendland 1973 $9,990.00
and Donna C. Wendland 1976 14,270.00
1977 383.00
5709-80 Irwin M. Adler 1976 56,460.77
and Helene E. Adler 1977 2,753.93
5710-80 Brent W. Trump 1976 21,777.00
and Cheryl A. Trump 1977 27,350.00
37,585.00 5711-80 Ronald Glassman CD rH
835.00 and Lenora Rae Glassman t> t-H
5712-80 Stephen L. Nemerofsky 1976…
2Cases cited23 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- National Labor Relations Board v. Wyman-Gordon Co.Supreme Court of the United States · 1969
- United States v. SullivanSupreme Court of the United States · 1927
- Dixon v. United StatesSupreme Court of the United States · 1965
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3Cited by76 opinions
- Surloff v. CommissionerUnited States Tax Court · 1983
- Wing v. CommissionerUnited States Tax Court · 1983
- Capek v. CommissionerUnited States Tax Court · 1986
- Russell Redhouse, Jr. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- CWT Farms, Inc. v. CommissionerUnited States Tax Court · 1982
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