Oliver Iron Mining Co. v. Commissioner
United States Tax Court
1. Deductions -- Percentage Depletion -- Gross Income From the Property -- Operation by an Agent. -- The owner's gross income from property operated for it by another is the gross before deduction of operating expenses and other charges. 2. Deductions -- Loss -- Abandonment or Surrender of Worthless Lease. -- A deductible loss occurs when a lessee cancels a lease which has lost all value and become a liability.
1Opinion of the Court
OPINION.
MuRdock, Judge:
The first issue relates to the deduction for depletion allowable to Neville for each of the taxable years. Neville elected to take percentage depletion and the Commissioner has allowed a deduction computed under that method. The only difference between the parties is as to the “gross income from the property.” Neville contends that its “percentage depletion should be calculated in exactly the same manner as if it had used an organization of its own to operate the properties, Oliver’s function being simply that of an operating agent, acting for a commission and…
2Cases cited3 opinions
- Helvering v. Mountain Producers Corp.Supreme Court of the United States · 1938
- Helvering v. Twin Bell Oil SyndicateSupreme Court of the United States · 1934
- J. S. Abercrombie Co. v. CommissionerUnited States Tax Court · 1946
3Cited by1 opinion
- Oliver Iron Mining Co. v. CommissionerUnited States Tax Court · 1948