McKinney v. Commissioner
United States Board of Tax Appeals
1. Income from an oil and gas lease may not all be treated as income until the capital value is returned. New Creek Co. v. Lederer,295 Fed. 433, followed. 2. A donee of property may be taxed upon the increment in value which occurred while the property was owned by the donor. Taft v. Bowers,278 U.S. 470, followed. 3. The donee of an oil and gas lease is not entitled to claim depletion based upon a discovery value established by the donor.
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1. Income from an oil and gas lease may not all be treated as income until the capital value is returned. New Creek Co. v. Lederer,295 Fed. 433, followed. 2. A donee of property may be taxed upon the increment in value which occurred while the property was owned by the donor. Taft v. Bowers,278 U.S. 470, followed. 3. The donee of an oil and gas lease is not entitled to claim depletion based upon a discovery value established by the donor. Melville G. Thompson,10 B.T.A. 25, followed. 4. Under the Revenue Act of 1921, the donee of an oil and gas lease is entitled to depletion upon the basis of…
1Opinion of the Court
*807OPINION.
Phillips:
The petitioners claim that, having each received the one sixty-fourth royalty interest in question as a gift, the same became capital and no part can constitute taxable income in their hands until the value of the gift is returned. They further contend that no part of the increment in value accruing prior to their acquisition can be taxed to them. These contentions are effectively disposed of in New Greek Co. v. Lederer, 295 Fed. 433; certiorari denied, 265 U. S. 581; and Taft v. Bowers, 278 U. S. 470.
It is urged by petitioners that if royalties are to be included as income,…
2Cases cited4 opinions
- United States v. LudeySupreme Court of the United States · 1927
- Heiner v. TindleSupreme Court of the United States · 1928
- Taft v. BowersSupreme Court of the United States · 1929
- New Creek Co. v. LedererCourt of Appeals for the Third Circuit · 1924
3Cited by11 opinions
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Haskell v. CommissionerUnited States Board of Tax Appeals · 1934
- Bullock v. CommissionerUnited States Board of Tax Appeals · 1931
- Daniel v. CommissionerUnited States Board of Tax Appeals · 1929
- Haskell v. CommissionerUnited States Board of Tax Appeals · 1934
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