Schermerhorn Oil Corp. v. Commissioner
United States Board of Tax Appeals
1. Employment contracts between oil companies and a commercial gelogist provided generally that the geologist should devote his time and skill to exploring possible oil developments, for which he was to be paid a salary and expenses.
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1. Employment contracts between oil companies and a commercial gelogist provided generally that the geologist should devote his time and skill to exploring possible oil developments, for which he was to be paid a salary and expenses. The companies were to be the sole judges as to the acquisition of properties; but if any were acquired upon the recommendation of the gelogist he was to be paid, in addition to his salary, 10 percent of the net profits resulting from the sale of oil produced upon any such property after the companies had reimbursed themselves for the expenses incurred in…
1Opinion of the Court
*157OPINION.
Mellott :
Under the applicable provisions of the Kevenue Acts of 1934 and 1936, the Schermerhorn Oil Corporation and the Schermer-horn-Winton Co., hereinafter sometimes referred to as the Schermer-horn companies, are allowed deductions for depletion of oil and gas properties either: (a) on the basis of 27% percent of the gross income from such properties not exceeding 50 percent of the net income; or (b) on the basis of cost, whichever is greater. Secs. 23 (m) and 114 (b) (1) and (3), Kevenue Acts of 1934 and 1936.1
*158In their income tax returns for the taxable years the Schermerhorn…
2Cases cited11 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Blair v. CommissionerSupreme Court of the United States · 1937
- Helvering v. EubankSupreme Court of the United States · 1941
6 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Estate of Kahn v. CommissionerCourt of Appeals for the Second Circuit · 1974
- Robinson v. CommissionerUnited States Tax Court · 1965
- Beach Petroleum Corp. v. CommissionerUnited States Tax Court · 1946
- Estate of Herman Kahn, Deceased v. Commissioner of Internal Revenue, Joseph E. Brooks and Alice K. Brooks v. Commissioner of Internal Revenue, Monroe J. Weintraub and Carol Weintraub v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
- Oak v. CommissionerUnited States Board of Tax Appeals · 1942
3 more not listed; retrieve them via the Exa API.