Hannah v. Commissioner
United States Board of Tax Appeals
1. The depletion which "the applicable statutes allow" (Murphy Oil Co. v. Burnet,287 U.S. 299) to an individual for the year 1923 is to be computed under the provisions of section 214(a)(10) of the 1921 Revenue Act and the applicable regulations as interpreted by T.D. 3938, all specifically approved in the cited case. 2. Where a bonus was paid in 1923 and there was no discovery until 1924, the leased property having been acquired prior to March 1, 1913, the proof of fair…
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1. The depletion which "the applicable statutes allow" (Murphy Oil Co. v. Burnet,287 U.S. 299) to an individual for the year 1923 is to be computed under the provisions of section 214(a)(10) of the 1921 Revenue Act and the applicable regulations as interpreted by T.D. 3938, all specifically approved in the cited case. 2. Where a bonus was paid in 1923 and there was no discovery until 1924, the leased property having been acquired prior to March 1, 1913, the proof of fair market value on March 1, 1913, and the "royalties expected to be received" is a prerequisite to an allowance for depletion.
1Opinion of the Court
DAVID HANNAH, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Hannah v. Commissioner
Docket No. 41390.
United States Board of Tax Appeals
31 B.T.A. 971; 1934 BTA LEXIS 1004;
December 31, 1934, Promulgated
1. The depletion which "the applicable statutes allow" (Murphy Oil Co. v. Burnet,287 U.S. 299) to an individual for the year 1923 is to be computed under the provisions of section 214(a)(10) of the 1921 Revenue Act and the applicable regulations as interpreted by T.D. 3938, all specifically approved in the cited case.
2. Where a bonus was paid in 1923 and there was no discovery until…
2Cases cited4 opinions
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Michna v. CommissionerUnited States Board of Tax Appeals · 1931
- Stoner v. CommissionerUnited States Board of Tax Appeals · 1934
- Hannah v. CommissionerUnited States Board of Tax Appeals · 1934