McFaddin v. Commissioner
United States Tax Court
1. Under an oil and gas lease, lessees were to pay a stated sum annually, called "rental," and to retain the royalties produced and be reimbursed therefrom each year, the excess to be paid to lessor.
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1. Under an oil and gas lease, lessees were to pay a stated sum annually, called "rental," and to retain the royalties produced and be reimbursed therefrom each year, the excess to be paid to lessor. Held, such payments were in the nature of advance royalty, and subject to depletion by lessor. 2. A trust received, by way of gift, certain real estate, a portion of which it subdivided into lots for sale at the suggestion of a licensed real estate broker, who was given the exclusive agency with a stated commission on all sales. The broker assumed advertising expense and made collections to the…
1Opinion of the Court
OPINION.
ARNOLD, Judge:
Respondent determined (1) that petitioners’ respective shares of the income of the trust should be increased, due to (a) his disallowance of depletion claimed on payments under the Humble lease in excess of royalties retained by the lessee, (b) his treatment of profits on the sale of Central Gardens lots as ordinary rather than as capital gain; (2) that such portions of petitioners’ distributive shares of the income of the trust as were attributable to royalties and to sales of trust property were separate and not community income; and (3) that with respect to…
2Cases cited20 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Irwin v. GavitSupreme Court of the United States · 1925
- Von Baumbach v. Sargent Land Co.Supreme Court of the United States · 1917
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
15 more not listed; retrieve them via the Exa API.
3Cited by54 opinions
- Farley v. CommissionerUnited States Tax Court · 1946
- Wing v. CommissionerUnited States Tax Court · 1983
- People v. . NelsonNew York Court of Appeals · 1897
- Hoffman v. CommissionerUnited States Tax Court · 1943
- Hochschild v. CommissionerUnited States Tax Court · 1946
49 more not listed; retrieve them via the Exa API.