Sneed v. Commissioner
United States Board of Tax Appeals
1. BONUSES - OIL AND GAS LEASES - DEPLETION. - Sums received as bonuses for the execution of oil and gas leases are payments in advance for oil and gas to be extracted and are therefore depletable. (Herring v. Commissioner,293 U.S. 322, followed.) 2. DELAY RENTALS - OIL AND GAS LEASES - DEPLETION. - Sums received as delay rentals distinguished from bonuses and royalties.
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1. BONUSES - OIL AND GAS LEASES - DEPLETION. - Sums received as bonuses for the execution of oil and gas leases are payments in advance for oil and gas to be extracted and are therefore depletable. (Herring v. Commissioner,293 U.S. 322, followed.) 2. DELAY RENTALS - OIL AND GAS LEASES - DEPLETION. - Sums received as delay rentals distinguished from bonuses and royalties. Such sums are not depletable, they not being in the nature of advanced royalties, but payments for the purpose of securing additional time in which to utilize the land. (Commissioner v. Wilson, 76 Fed.(2d) 766, followed.)
1Opinion of the Court
SUPPLEMENTAL OPINION.
Mellott:
Decision in the above case, reported at 30 B. T. A. 1121, was promulgated June 29, 1934. Therein we stated that judgment would be entered under Rule 50. Before the entry of such judgment, petitioner filed certain motions, one of which asked that final judgment be withheld until the Supreme Court handed down a decision in the case of William E. Herring v. Commissioner. While this motion was not formally acted upon, final judgment was nevertheless withheld. Decision has now been rendered in that case, and is reported in 293 U. S. 322.
A motion was also filed before…
2Cases cited10 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Herring v. CommissionerSupreme Court of the United States · 1934
- Texas Co. v. DavisTexas Supreme Court · 1923
5 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Sneed v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1941
- Shamrock Oil & Gas Corp. v. CommissionerUnited States Tax Court · 1961
- Phillips Petroleum Co. v. CommissionerUnited States Tax Court · 1995
- Opine Timber Co. v. CommissionerUnited States Tax Court · 1975
- United States v. 525 CompanyCourt of Appeals for the Fifth Circuit · 1965
11 more not listed; retrieve them via the Exa API.