Elkins v. Commissioner
United States Tax Court
Prior to Oct. 29, 1976, a limited partnership named Iaeger Partners (Iaeger) was formed and became obligated to pay coal royalties. Petitioner became a limited partner in Iaeger sometime between Oct. 29 and yearend. Iaeger accrued the royalties in its tax return for 1976, giving rise to a loss, part of which was passed through to petitioner.
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Prior to Oct. 29, 1976, a limited partnership named Iaeger Partners (Iaeger) was formed and became obligated to pay coal royalties. Petitioner became a limited partner in Iaeger sometime between Oct. 29 and yearend. Iaeger accrued the royalties in its tax return for 1976, giving rise to a loss, part of which was passed through to petitioner. The partnership produced no coal in 1976. On Oct. 29, 1976, proposed amendments to sec. 1.612-3(b)(3), Income Tax Regs., were announced which generally prohibited the accrual of mineral royalties in advance of production. The announcement of the proposed…
1Opinion of the Court
OPINION
Featherston, Judge:
This case is before the Court on respondent’s motion for reconsideration of an order, dated May 13, 1983, denying his motion for partial summary judgment pursuant to Rule 121.1 The motion for partial summary judgment raised an issue as to whether the Commissioner properly applied the amended section 1.612-3(b)(3), Income Tax Regs., in disallowing a partnership loss deduction claimed by petitioner for 1976. Most of the partnership’s loss was attributable to a deduction for advanced royalties which the partnership accrued as a result of a sublease of certain West…
2Cases cited26 opinions
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- United States v. SullivanSupreme Court of the United States · 1927
- Dixon v. United StatesSupreme Court of the United States · 1965
- Brannen v. CommissionerUnited States Tax Court · 1982
- Jacklin v. CommissionerUnited States Tax Court · 1982
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3Cited by53 opinions
- Naftel v. CommissionerUnited States Tax Court · 1985
- Beard v. Comm'rUnited States Tax Court · 1984
- Capitol Fed. Sav. & Loan Ass'n v. CommissionerUnited States Tax Court · 1991
- Estate of Gardner v. CommissionerUnited States Tax Court · 1984
- Abatti v. CommissionerUnited States Tax Court · 1986
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