Porter v. Commissioner
United States Board of Tax Appeals
1. On the facts petitioner is an association taxable as a corporation. 2. Petitioner made a lease of land though to be oil producing. The lessee in partial consideration for the lease paid to petitioner a cash bonus. No oil was discovered on the premises and they were reconveyed to petitioner.
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1. On the facts petitioner is an association taxable as a corporation. 2. Petitioner made a lease of land though to be oil producing. The lessee in partial consideration for the lease paid to petitioner a cash bonus. No oil was discovered on the premises and they were reconveyed to petitioner. Held, the bonus was not a royalty within the meaning of section 351, Revenue Act of 1934. 3. On the facts, the fair market value of certain land payment contracts transferred to petitioner, as of the time of transfer, was the face amount of the balances due thereon. 4. Amount paid by petitioner as an…
1Opinion of the Court
*687OPINION.
Kjern :
The principal issue is whether the petitioner, Porter Property Trustees, Ltd., was an association taxable as a corporation, or a trust. On the theory that it was an association, respondent claims the personal holding company surtax and nonfiling penalty.
The question is no longer novel, having received consideration from the Supreme Court in several cases, in the latest of which, Morrissey v. Commissioner, 296 U. S. 344, the Court reviewed at length the course of its earlier decisions and the dependent Treasury regulations seeking to interpret them, and laid down criteria which…
2Cases cited5 opinions
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Hecht v. MalleySupreme Court of the United States · 1924
- Helvering v. Coleman-Gilbert AssociatesSupreme Court of the United States · 1935
- Swanson v. CommissionerSupreme Court of the United States · 1935
- Helvering v. CombsSupreme Court of the United States · 1935
3Cited by13 opinions
- Commissioner of Internal Revenue v. Clarion Oil Co.Court of Appeals for the D.C. Circuit · 1945
- Bayou Verret Land Co. v. CommissionerCourt of Appeals for the Fifth Circuit · 1971
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
- Tuttle v. United StatesUnited States Court of Claims · 1951
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
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