Capek v. Commissioner
United States Tax Court
Ps were investors in the Price Coal leasing program. The program promised investors a royalty deduction of $ 4 for every $ 1 of cash invested. Ps entered into a mining lease with Price Coal which required the payment of one-quarter of the annual royalty in cash and the remaining three-quarters by means of a nonrecourse or a recourse note.
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Ps were investors in the Price Coal leasing program. The program promised investors a royalty deduction of $ 4 for every $ 1 of cash invested. Ps entered into a mining lease with Price Coal which required the payment of one-quarter of the annual royalty in cash and the remaining three-quarters by means of a nonrecourse or a recourse note. Ps also entered into contracts with a related corporation, Price Ltd., for the mining and sale of coal, and, for program years 1979 and thereafter, that corporation agreed to make certain payments to an investor in the event that coal was not mined. Held: 1.…
1Opinion of the Court
SIMPSON, Judge-.
The Commissioner determined the following deficiencies in the petitioners’ Federal income taxes:
Taxable year Deficiency Petitioners
1978 $22,471.00 Richard C. Capek and Joy Ann Capek
1981 14,323.00 Gene Croci and Mary Croci
11,695.57 Paul A. Reaume 05 t> 05 rH
25,114.23 and Alice May Reaume O CO 05 rH
8,440.00 Arthur J. Spiller o 00 05 rH
10,748.00 and Margie R. Spiller T-i 00 05 iH
The issues for decision are: (1) Whether petitioners Capek and Reaume engaged in their coal mining activities with a profit objective within the meaning of section 183 of the Internal Revenue Code of…
2Cases cited49 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Dreicer v. CommissionerUnited States Tax Court · 1982
- Golanty v. CommissionerUnited States Tax Court · 1979
44 more not listed; retrieve them via the Exa API.
3Cited by84 opinions
- Rose v. CommissionerUnited States Tax Court · 1987
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- Levy v. CommissionerUnited States Tax Court · 1988
- Hulter v. CommissionerUnited States Tax Court · 1988
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