Bolling v. Commissioner
United States Tax Court
Petitioners, operating as a partnership, strip mined coal under a lease agreement and mining contract with the owner of the mineral rights. The agreement described certain named coal seams and obligated the partnership to furnish necessary labor, tools, and equipment, and acquire necessary surface rights. The owner reserved an option to buy all coal the partnership mined at a mutually agreed-to price. The contract was cancelable upon 30 days' notice.
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Petitioners, operating as a partnership, strip mined coal under a lease agreement and mining contract with the owner of the mineral rights. The agreement described certain named coal seams and obligated the partnership to furnish necessary labor, tools, and equipment, and acquire necessary surface rights. The owner reserved an option to buy all coal the partnership mined at a mutually agreed-to price. The contract was cancelable upon 30 days' notice. Held, petitioners did not acquire an economic interest in the coal in place and they were not entitled to take depletion deduction under section…
1Opinion of the Court
MuleoNey, Judge:
The respondent determined deficiencies in the petitioners’ income taxes as follows:
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The issue in these consolidated cases is whether J. Shelton Bolling, Carlos B. Bolling, Cecil W. Bolling, and G. C. Branham, operating as the Bolling Coal Company, a partnership, possessed an economic interest in the coal which they owned under a leased agreement in 1956 and 1957 so as to be entitled to deductions for percentage depletion.
FINDINGS OP PACT.
Some of the facts were stipulated and they are herein included by this reference.
J. Shelton Bolling and Jane Bolling, husband…
2Cases cited6 opinions
- Palmer v. BenderSupreme Court of the United States · 1932
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Parsons v. SmithSupreme Court of the United States · 1959
- United States v. James C. And Helen M. Stallard, and Dewey H. And Geneva StallardCourt of Appeals for the Fourth Circuit · 1959
1 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Mullins v. CommissionerUnited States Tax Court · 1967
- Merritt v. CommissionerUnited States Tax Court · 1962
- Kennecott Copper Corporation v. The United StatesUnited States Court of Claims · 1965
- Legg v. CommissionerUnited States Tax Court · 1962
- Washburn v. CommissionerUnited States Tax Court · 1965
13 more not listed; retrieve them via the Exa API.