McCall v. Commissioner
United States Tax Court
During 1952, petitioners Walter Bernard McCall, Sam G. McCall, and a third partner deep mined coal under a contract with the lessee of certain coal lands. They had the exclusive right to deep mine all coal covered by the contract, and the price which they received was dependent upon the sale of the coal and the market price thereof. The amount of coal mined was determined by the lessee.
Read the full summary
During 1952, petitioners Walter Bernard McCall, Sam G. McCall, and a third partner deep mined coal under a contract with the lessee of certain coal lands. They had the exclusive right to deep mine all coal covered by the contract, and the price which they received was dependent upon the sale of the coal and the market price thereof. The amount of coal mined was determined by the lessee. Held, petitioners had an economic interest in the coal which they mined and are entitled to a percentage depletion allowance in computing their income, as provided in sections 23 (m) and 114 (b) of the 1939…
1Opinion of the Court
OPINION.
Rice, Judge:
The petitioners herein argue that by virtue of the contract under which they mined coal for Norma, they possessed an economic interest therein and are, therefore, entitled to a deduction for depletion, as provided in sections 23 (m) 1 and 114 (b) 2 of the 1939 Code. The respondent, on the other hand, contends that the partnership derived only an economic advantage from its mining operations and that it, therefore, possessed no depletable economic interest in the coal which it mined.
Upon a careful review of the entire record in this case, we are satisfied that the…
2Cases cited3 opinions
- Ruston v. CommissionerUnited States Tax Court · 1952
- Emil Usibelli and Rose P. Usibelli v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Virginia B. Coal Co. v. CommissionerUnited States Tax Court · 1956
3Cited by3 opinions
- Walter Bernard McCall and Marie S. McCall Sam G. McCall and Ruth W. McCall v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1963
- McCall v. CommissionerUnited States Tax Court · 1962
- McCall v. CommissionerUnited States Tax Court · 1956