C. H. Mead Coal Co. v. Commissioner
United States Board of Tax Appeals
A taxpayer on the accrual basis subleased coal lands, reserving, in addition to royalties payable to the original lessor, a tonnage royalty of 5 cents per ton for each ton of coal mined, and, pursuant to the contract, received without restriction as to their disposition, use, or enjoyment lump sums as advance payments on such tonnage royalty. No coal was mined and no part of the advance payments was earned in the year in which the payments were received.
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A taxpayer on the accrual basis subleased coal lands, reserving, in addition to royalties payable to the original lessor, a tonnage royalty of 5 cents per ton for each ton of coal mined, and, pursuant to the contract, received without restriction as to their disposition, use, or enjoyment lump sums as advance payments on such tonnage royalty. No coal was mined and no part of the advance payments was earned in the year in which the payments were received. Held, the advance payments constituted income of the taxpayer for the year in which they were actually received.
1Opinion of the Court
C. H. MEAD COAL COMPANY, CORPORATION (PARENT), PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
C. H. Mead Coal Co. v. Commissioner
Docket No. 69951.
United States Board of Tax Appeals
31 B.T.A. 190; 1934 BTA LEXIS 1140;
September 19, 1934, Promulgated
A taxpayer on the accrual basis subleased coal lands, reserving, in addition to royalties payable to the original lessor, a tonnage royalty of 5 cents per ton for each ton of coal mined, and, pursuant to the contract, received without restriction as to their disposition, use, or enjoyment lump sums as advance payments on such tonnage…
2Cases cited1 opinion
- C. H. Mead Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1934