Black Mountain Corp. v. Commissioner
United States Tax Court
Income Tax -- Deductions -- Percentage Depletion -- "The Property." -- The petitioner had two mines, in each of which coal was being mined from a definite area assigned to it for practical and economic reasons. The petitioner had acquired its coal lands at various times and had assigned portions of various acquisitions to each mine. The coal mined during the taxable years from each mine was from tracts acquired at various times.
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Income Tax -- Deductions -- Percentage Depletion -- "The Property." -- The petitioner had two mines, in each of which coal was being mined from a definite area assigned to it for practical and economic reasons. The petitioner had acquired its coal lands at various times and had assigned portions of various acquisitions to each mine. The coal mined during the taxable years from each mine was from tracts acquired at various times. Held, that the petitioner had two properties, and only two, for the purpose of computing percentage depletion under section 114 (b) (4).
1Opinion of the Court
OPINION.
Muedock, Judge:
Section 23 (m) of the Revenue Act of 1936 grants, in the case of mines, a deduction of a reasonable allowance for depletion according to the peculiar conditions in each case. That allowance is to be made under rules and regulations prescribed by the Commissioner with the approval of the Secretary. Section 114 (b) (4) allows so called percentage depletion for coal and other mines. It provides that the allowance for depletion under section 23 (m), in the case of coal mines, shall be 5 percent of the gross income from the property during the taxable year, but such…
2Cases cited1 opinion
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
3Cited by27 opinions
- Morrisdale Coal Mining Co. v. CommissionerUnited States Tax Court · 1949
- Island Creek Coal Co. v. CommissionerUnited States Tax Court · 1958
- Amherst Coal Co. v. CommissionerUnited States Tax Court · 1948
- Gifford-Hill & Co. v. CommissionerUnited States Tax Court · 1948
- Leechburg Mining Co. v. CommissionerUnited States Tax Court · 1950
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