Wheelock v. Commissioner
United States Board of Tax Appeals
1. Discovery value for the purpose of computing depletion on petitioners' interest in a producing oil lease determined. 2. The petitioners are not entitled to deductions for depreciation in 1923 where the depreciable property was sold in 1924, and tax liability on profit from such sale settled under section 606 of the Revenue Act of 1928 without adjustment for depreciation in 1923. 3. Where a taxpayer has exercised his option under the intangible provision of article 223 of…
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1. Discovery value for the purpose of computing depletion on petitioners' interest in a producing oil lease determined. 2. The petitioners are not entitled to deductions for depreciation in 1923 where the depreciable property was sold in 1924, and tax liability on profit from such sale settled under section 606 of the Revenue Act of 1928 without adjustment for depreciation in 1923. 3. Where a taxpayer has exercised his option under the intangible provision of article 223 of Regulations 62 and has charged development costs of a lease to expense and has claimed and has been allowed the amount…
1Opinion of the Court
*614OPINION.
Lansdon :
Petitioners allege tbat they are entitled to deduct the amount of $600 from the income of the marital community of which they are members, as a bad debt ascertained to be worthless and charged off in the taxable year. Wheelock testified that as surety on a note which the money lender failed to collect by a suit in 1923 he paid more than $600 in that year. The evidence shows that in the taxable year he paid not less than $600 as surety on the note of one Banks, who was then entirely without assets. In such circumstances the deduction claimed is allowable. Otto P. Heyn. 4…
2Cases cited12 opinions
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- Bonwit Teller & Co. v. United StatesSupreme Court of the United States · 1931
- Shutte v. ThompsonSupreme Court of the United States · 1873
- Swain v. SeamansSupreme Court of the United States · 1870
- Union Metal Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1925
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3Cited by5 opinions
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- Wheelock v. CommissionerUnited States Board of Tax Appeals · 1933