A. T. Jergins Trust v. Commissioner
United States Board of Tax Appeals
1. Petitioner's income from an oil and gas lease upon lands owned by a municipal corporation is not exempt from Federal income and profits taxes. 2. Evidence held insufficient to establish the worthlessness of an oil and gas lease where it appeared that petitioner continued to pay the rentals necessary to prevent forfeiture. 3. Expenditures for fuel, wages, repairs, hauling, etc., in connection with the drilling of oil and gas wells are capital expenses recoverable through…
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1. Petitioner's income from an oil and gas lease upon lands owned by a municipal corporation is not exempt from Federal income and profits taxes. 2. Evidence held insufficient to establish the worthlessness of an oil and gas lease where it appeared that petitioner continued to pay the rentals necessary to prevent forfeiture. 3. Expenditures for fuel, wages, repairs, hauling, etc., in connection with the drilling of oil and gas wells are capital expenses recoverable through depreciation rather than depletion.
1Opinion of the Court
A. T. JERGINS TRUST, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
A. T. Jergins Trust v. Commissioner
Docket No. 29940.
United States Board of Tax Appeals
22 B.T.A. 551; 1931 BTA LEXIS 2100;
March 5, 1931, Promulgated
1. Petitioner's income from an oil and gas lease upon lands owned by a municipal corporation is not exempt from Federal income and profits taxes.
2. Evidence held insufficient to establish the worthlessness of an oil and gas lease where it appeared that petitioner continued to pay the rentals necessary to prevent forfeiture.
3. Expenditures for fuel, wages, repairs,…
2Cases cited4 opinions
- Metcalf & Eddy v. MitchellSupreme Court of the United States · 1926
- United States v. LudeySupreme Court of the United States · 1927
- A. T. Jergins Trust v. CommissionerUnited States Board of Tax Appeals · 1931
- Coronado Oil & Gas Co. v. CommissionerUnited States Board of Tax Appeals · 1929