Hardesty v. Commissioner
United States Board of Tax Appeals
1. Petitioners were the owners of an oil payment payable out of seven-sixteenths of the oil produced by designated wells. A seven-sixteenths interest in the oil produced was assigned to them until the payments were completed.
Read the full summary
1. Petitioners were the owners of an oil payment payable out of seven-sixteenths of the oil produced by designated wells. A seven-sixteenths interest in the oil produced was assigned to them until the payments were completed. Held, petitioners were the owners of an economic interest in the oil properties involved and amounts received by them during the taxable year under these payments must be included in income, the cost basis of such payments to be recouped only through depletion. T. W. Lee,42 B.T.A. 1217, followed. 2. Petitioners, under the terms of two agreements, one for the assignment…
1Opinion of the Court
*249OPINION.
Arttndell:
The issues in this proceeding have been enumerated at the outset and will be considered in the order there set forth.
Issue No. 1.
We are called on here to say whether the petitioners, F. F. Hardesty and his wife, may apply the whole of the proceeds received by them during the taxable year 1935 under the Haddaway oil payment to the cost of that payment as claimed by them, or may thus apply only the portion representative of cost and report the residue as taxable income as claimed by the respondent. The petitioners concede on brief that the issue here is substantially the same…
2Cited by6 opinions
- Hardesty v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Hardesty v. CommissionerUnited States Board of Tax Appeals · 1941
- King Oil Co. v. CommissionerUnited States Tax Court · 1944
- LeSuer v. CommissionerUnited States Tax Court · 1943
- Roberts v. CommissionerUnited States Tax Court · 1948
1 more not listed; retrieve them via the Exa API.