Dolomite, Inc. v. Commissioner
United States Board of Tax Appeals
Where the facts fail to establish that certain property was acquired in connection with a reorganization, held that taxpayer is entitled to use as a basis for depletion the cost of such property to its subsidiary.
1Opinion of the Court
*1274OPINION.
Van Fossan:
The sole issue in this proceeding is whether the proper basis for depletion of rock deposits formerly owned by the Stone Co. is their original cost to it or is their cost to the petitioner as measured by the fair market value of the preferred stock of the Sturgeon Bay Co. transferred to the Stone Co. in payment for all of the latter company’s stock, and hence for the control and possession of its assets, including such deposits.
Section 114 (b) (1) of the Revenue Act of 1928 provides:
The basis upon which depletion is to be allowed in respect oí any property shall be the same…
2Cases cited2 opinions
- Warner Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Arctic Ice Machine Co. v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by2 opinions
- Dolomite, Inc. v. CommissionerUnited States Board of Tax Appeals · 1933
- T. T. Word Supply Co. v. CommissionerUnited States Board of Tax Appeals · 1940