Slagter v. Commissioner
United States Tax Court
Prior to and during 1948, petitioner and decedent were members of a partnership which was engaged in the business of developing and operating oil and gas leases. The partnership owned a leasehold interest in 45 oil and gas leases. In 1948, the partnership sold an oil payment to Ashland Oil & Refining Company payable out of 60 per cent of the partnership's interest in the leases.
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Prior to and during 1948, petitioner and decedent were members of a partnership which was engaged in the business of developing and operating oil and gas leases. The partnership owned a leasehold interest in 45 oil and gas leases. In 1948, the partnership sold an oil payment to Ashland Oil & Refining Company payable out of 60 per cent of the partnership's interest in the leases. The partnership owned the leasehold interests for varying periods in excess of 6 months prior to the effective date of the assignment. Held, petitioners are entitled to treat the gain from the sale of the oil payment…
1Opinion of the Court
OPINION.
Akundell, Judge:
The only issue presented is whether the gain realized by the partnership in 1948 upon the sale of the oil payment to Ashland is taxable as capital gain, as petitioners contend, or as ordinary income subject to an allowance for depletion, as respondent has determined. The amount of the gain is not in dispute. It has been stipulated that, if the Court determines that the gain is taxable as capital gain, the estimated cost on June 1, 1948, of producing the oil assigned to Ashland is to be deducted from the proceeds of the sale in determining the amount of the gain.
Petition…
2Cases cited7 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Anderson v. HelveringSupreme Court of the United States · 1940
- D. K. Caldwell v. Ellis Campbell, Jr., Former Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Lee v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Nordan v. CommissionerUnited States Tax Court · 1954
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Commissioner of Internal Revenue v. P. G. Lake, Inc.Court of Appeals for the Fifth Circuit · 1957
- Slagter v. CommissionerUnited States Tax Court · 1955