P. G. Lake, Inc. v. Commissioner
United States Tax Court
1. Capital Gain -- Oil and Gas -- Undivided Interest in Minerals in Place Until Production Equaled a Stated Amount. -- The petitioner realized long-term capital gain and not ordinary income when in 1950, in consideration of the cancellation of an indebtedness of $ 600,000, it transferred 25 per cent of seven-eighths of all oil and gas upon two leases owned by it to its creditor until such time as the payments received by the latter equaled the amount of the debt plus…
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1. Capital Gain -- Oil and Gas -- Undivided Interest in Minerals in Place Until Production Equaled a Stated Amount. -- The petitioner realized long-term capital gain and not ordinary income when in 1950, in consideration of the cancellation of an indebtedness of $ 600,000, it transferred 25 per cent of seven-eighths of all oil and gas upon two leases owned by it to its creditor until such time as the payments received by the latter equaled the amount of the debt plus interest thereon. 2. Depletion Allowance -- Oil and Gas -- Substitute Royalties -- Transferred Allowables. -- The gross income…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined deficiencies in income tax of $9,060.79 for 1949, $47,459.09 for 1950, and $12,026.24 for 1951 and a deficiency in excess profits tax for 1950 of $65,044.07. Two issues are presented for decision. One is whether the petitioner realized a long-term capital gain from the sale in 1950 of a portion of an interest in two oil and gas leases. The facts relating to this issue have been fully stipulated and the stipulation on this and the other issue is adopted, together with all exhibits, as findings of fact in this case.
The petitioner is a Delaware…
2Cases cited6 opinions
- D. K. Caldwell v. Ellis Campbell, Jr., Former Collector of Internal RevenueCourt of Appeals for the Fifth Circuit · 1955
- Fleming v. CommissionerUnited States Tax Court · 1955
- Nordan v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Southwest Exploration Company, a CorporationCourt of Appeals for the Ninth Circuit · 1955
- Hawn v. CommissionerUnited States Tax Court · 1954
1 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Tidewater Oil Co. v. United StatesUnited States Court of Claims · 1964
- Commissioner of Internal Revenue v. P. G. Lake, Inc.Court of Appeals for the Fifth Circuit · 1957
- Scofield v. O'ConnorCourt of Appeals for the Fifth Circuit · 1957
- Bransford v. CommissionerUnited States Tax Court · 1977
3 more not listed; retrieve them via the Exa API.