Higgins v. Commissioner
United States Tax Court
Petitioner is one of the owners of an iron ore mine which was leased in the years in question to the United States Steel Corporation. The rent or royalty fixed in the lease was a cash sum plus payment by United States Steel of the ad valorem real estate tax.
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Petitioner is one of the owners of an iron ore mine which was leased in the years in question to the United States Steel Corporation. The rent or royalty fixed in the lease was a cash sum plus payment by United States Steel of the ad valorem real estate tax. Held, that the ad valorem real estate tax paid by United States Steel on the mine in question is includible in petitioner's gross income as additional rent or royalty and she is entitled to percentage depletion on the amounts so paid. Burt v. United States, 145 Ct. Cl. 282, 170 F. Supp. 953 (Ct. Cl., 1959), followed.
1Opinion of the Court
OPINION.
Fisher, Judge:
The above-entitled cases were consolidated. They involve deficiencies in income tax determined against petitioner for the years and in the amounts following:
Year Deficiency
1953 -$1, 527.11
1954 - 2, 271.28
1955 - 2,428. 99
1956 _ 1, 928. 56
Total- 8,155.94
The. only issue presented is whether ad valorem real estate taxes paid by lessee, United States Steel Corporation, on an iron ore mine are includible in lessor’s gross income for such years as additional rent or royalty and thus part of lessor’s gross income from the property.
All of the facts are stipulated and are included…
2Cases cited1 opinion
- Burt v. United StatesUnited States Court of Claims · 1959
3Cited by13 opinions
- United States Steel Corporation v. United StatesDistrict Court, S.D. New York · 1967
- Callahan Mining Corp. v. CommissionerUnited States Tax Court · 1969
- Meyer Handelman, William Handelman, Donald N. Hanson, Laird Lucas and Frederick T. Weyerhaeuser, Trustees v. The United StatesUnited States Court of Claims · 1966
- Clyde Guthrie and Edith D. Guthrie v. United StatesCourt of Appeals for the Sixth Circuit · 1963
- McLean v. CommissionerUnited States Tax Court · 1970
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