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
OPINION.
Van Fossan:
The respondent determined deficiencies in tax, as follows:
Year Deficiency
1923_$6,920.42
1924_52,100.89
1925_12, 713. 33
At the hearing the parties filed a stipulation of facts in substantially the following form:
David Hannah, the petitioner, and his wife, Ethel May Hannah, are citizens of the State of Texas, and of the United States, and were married and living together during the taxable years involved herein, and had two dependent children under eighteen years of age during the year 1923 and throe dependent children during the years 1924 and 1925.
About the year 1901, said…
2Cases cited1 opinion
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
3Cited by2 opinions
- Hannah v. CommissionerUnited States Board of Tax Appeals · 1934
- Stewart v. CommissionerUnited States Board of Tax Appeals · 1937