Holly Development Co. v. Commissioner
United States Board of Tax Appeals
Interest paid during the taxable year on Federal income tax deficiencies for prior years, held, to reduce the "net income of the taxpayer * * * from the property" for purposes of computing the deduction for percentage depletion under section 114(b)(3) of the Revenue Act of 1934.
1Opinion of the Court
*52OPINION.
Black:
The Commissioner has determined a deficiency of $2,103.76 in petitioner’s income tax liability for the year 1935. The deficiency is due to certain adjustments made by the Commissioner in petitioner’s income tax return for 1935 as follows:
Unallowable deductions:(a) Depletion-$13, 745. 49(b) Depreciation_ 1, 554.55
Total_ 15,300.04
The petitioner does not contest adjustment (b). By an appropriate assignment of error petitioner does contest adjustment (a).
Thus there is presented for our decision only one issue, namely, whether the respondent erred in deducting $23,667.03 interest…
2Cases cited1 opinion
- Helvering v. Wilshire Oil Co.Supreme Court of the United States · 1939
3Cited by5 opinions
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964
- Daube v. Oklahoma Tax CommissionSupreme Court of Oklahoma · 1957
- Holly Development Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1964
- Rialto Mining Corp. v. CommissionerUnited States Tax Court · 1946