Utah Alloy Ores, Inc. v. Commissioner
United States Tax Court
Percentage Depletion -- Mining Leases -- Transportation of Ore. -- Petitioner, owner of mining claims for uranium on land owned by the United States, contracted with miners for extraction of ore to be delivered to petitioner for transportation and delivery to a processing plant designated by the Atomic Energy Commission at a price fixed by the Commission, which also fixed an allowance for hauling.
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Percentage Depletion -- Mining Leases -- Transportation of Ore. -- Petitioner, owner of mining claims for uranium on land owned by the United States, contracted with miners for extraction of ore to be delivered to petitioner for transportation and delivery to a processing plant designated by the Atomic Energy Commission at a price fixed by the Commission, which also fixed an allowance for hauling. Petitioner paid two-thirds of the price to the miners and retained one-third of the price and all the hauling allowance. Held: (1) The petitioner is entitled to the deduction for percentage…
1Opinion of the Court
Tietjens, Judge:
The respondent determined deficiencies in income taxes for the calendar years 1952,1953, and 1954 in the amounts of $546.40, $676.38, and $22,548.19, respectively. There are two issues for decision. These are whether (1) the economic interest in the ore in place is to be shared between petitioner and the miners of the ore for purposes of computing the depletion allowable to petitioner, and (2) whether hauling allowances paid by the purchasers of the ore are part of the gross income from the property. Certain facts are stipulated. The petitioner’s tax returns were filed with…
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