Potts v. Commissioner
United States Tax Court
Petitioners extracted oil and gas in 1981, reported gross income therefrom in 1982, and offset that income with a percentage depletion allowance pursuant to sec. 613A, I.R.C. 1954. In computing the allowance, petitioners used a rate of 20 percent, the applicable percentage depletion rate for 1981 under the rate schedule of sec. 613A(c)(5), I.R.C. 1954, instead of 18 percent, the applicable percentage depletion rate thereunder for 1982. Held, petitioners must use the 1982…
Read the full summary
Petitioners extracted oil and gas in 1981, reported gross income therefrom in 1982, and offset that income with a percentage depletion allowance pursuant to sec. 613A, I.R.C. 1954. In computing the allowance, petitioners used a rate of 20 percent, the applicable percentage depletion rate for 1981 under the rate schedule of sec. 613A(c)(5), I.R.C. 1954, instead of 18 percent, the applicable percentage depletion rate thereunder for 1982. Held, petitioners must use the 1982 rate of 18 percent, and not the 1981 rate of 20 percent, as the applicable percentage depletion rate under the rate…
1Opinion of the Court
OPINION
STERRETT, Chief Judge:*
By notice of deficiency dated November 12, 1986, respondent determined a deficiency of $1,565.21 in petitioners’ Federal income tax for calendar year 1982. After concessions, the sole issue for decision is whether petitioners, who extracted oil and gas in 1981 and reported gross income -therefrom in 1982, must use a percentage depletion rate of 18 percent or 20 percent pursuant to the rate schedule under section 613A(c)(5).1
This case was submitted on fully stipulated facts pursuant to Rule 122. The stipulation of facts and the exhibits attached thereto are…
2Cases cited4 opinions
- Commissioner v. EngleSupreme Court of the United States · 1984
- Glass v. CommissionerUnited States Tax Court · 1981
- Engle v. CommissionerUnited States Tax Court · 1981
- Fred L. And Mary A. Engle v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1982
3Cited by1 opinion
- Potts v. CommissionerUnited States Tax Court · 1988