Leydig v. Commissioner
United States Board of Tax Appeals
1. The right to oil and gas royalties is an assignable property right, and following an assignment of a fractional interest therein by taxpayer to his wife, royalties payable on such fractional interest are income of the assignee by virtue of her ownership and taxable only to her. 2. An assignment, reciting a nominal consideration and purporting to convey an interest in the oil and gas royalty interests then held or to be acquired by the land-owner, conveyed an interest in…
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1. The right to oil and gas royalties is an assignable property right, and following an assignment of a fractional interest therein by taxpayer to his wife, royalties payable on such fractional interest are income of the assignee by virtue of her ownership and taxable only to her. 2. An assignment, reciting a nominal consideration and purporting to convey an interest in the oil and gas royalty interests then held or to be acquired by the land-owner, conveyed an interest in the royalty right then in being, but could not operate as a present conveyance of royalties rights to be acquired as no…
1Opinion of the Court
*127OPINION.
Siefkin :
We have not been told the amount of income which the petitioner contends has been erroneously added to his reported income, but the deficiency notice informs us that the petitioner’s tax of $14,132.20 is the result of a decision of the Commissioner of Internal Revenue that the entire amount of oil royalties received by the petitioner should be included in his income. The petitioner contends that half of these royalties belong to his wife and constituted no part of his own income. To support this contention he calls our attention to the work performed by his wife on the farm,…
2Cases cited23 opinions
- Ohio Oil Company v. IndianaSupreme Court of the United States · 1900
- Paxton v. Benedum-Trees Oil Co.West Virginia Supreme Court · 1917
- Kansas Natural Gas Co. v. Board of County CommissionersSupreme Court of Kansas · 1907
- State v. Ohio Oil Co.Indiana Supreme Court · 1898
- Robinson v. JonesSupreme Court of Kansas · 1925
18 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Chisholm v. CommissionerUnited States Board of Tax Appeals · 1934
- Boehm v. CommissionerUnited States Board of Tax Appeals · 1937
- Browning v. CommissionerUnited States Board of Tax Appeals · 1929
- Burket v. CommissionerUnited States Board of Tax Appeals · 1930
- Chicago Title & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1935
4 more not listed; retrieve them via the Exa API.