Fleming v. Commissioner
United States Board of Tax Appeals
1. Petitioner was the owner with two others of an oil payment payable out of seven-sixteenths of the oil produced by designated wells. A seven-sixteenths interest in the oil produced by these wells was assigned to petitioner and his coowners until the payment was completed.
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1. Petitioner was the owner with two others of an oil payment payable out of seven-sixteenths of the oil produced by designated wells. A seven-sixteenths interest in the oil produced by these wells was assigned to petitioner and his coowners until the payment was completed. Held, petitioner was the owner of an economic interest in the oil properties involved and amounts received during the taxable year under these payments must be included in income, the cost basis of such payments to be recouped only through depletion. T. W. Lee,42 B.T.A. 1217, followed. 2. Petitioner as trustee of a certain…
1Opinion of the Court
*232OPINION.
Arttndell :
The issues in this proceeding have been enumerated at the outset and will be considered hi the order there set forth.
Issue No. 1.
We are called on here to say whether petitioner may apply the whole of the proceeds received during the taxable year 1935 under the Haddaway Oil Payment to the cost of that payment as claimed by him or may thus apply only the portion representative of cost and report the residue as taxable income as claimed by the respondent. The petitioner concedes on brief that the issue here is substantially the same as that presented in T. W. Lee, 42 B. T. A.…
2Cited by9 opinions
- Hay v. United StatesDistrict Court, N.D. Texas · 1967
- Upton v. CommissionerUnited States Tax Court · 1959
- Estate of Mary Jane Little, Deceased, Bank of America National Trust and Savings Association, Executors v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1960
- Apartments Trust v. CommissionerUnited States Tax Court · 1951
- Sneed v. CommissionerUnited States Tax Court · 1953
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