Petroleum Exploration v. Commissioner
United States Board of Tax Appeals
DEDUCTION - DEPRECIATION. - Amounts expended by petitioner during 1925, 1926 and 1927, representing cost of drilling productive oil wells, of freight and haulage and of labor employed in installing equipment in the wells, all of which cost was capitalized, held, to be recoverable through depreciation rather than depletion. A. T. Jergins Trust,22 B.T.A. 551, followed.
1Opinion of the Court
*892OPINION.
Tettssell :
In the case of A. T. Jergins Trust, 22 B. T. A. 551, we held, under, the applicable provisions of the Revenue Acts of 1921 and 1924, that capitalized expenditures of the type involved in the instant case, are recoverable through depreciation rather than depletion. The instant case involves the years 1925,1926 and 1927 and the applicable provisions of the 1926 Act are to the same effect as those of the 1924 Act. Accordingly, our decision in A. T. Jergins Trust, supra, is controlling, and upon authority of that decision the petitioner’s contention is sustained and the…
2Cited by2 opinions
- Petroleum Exploration v. BurnetSupreme Court of the United States · 1933
- Petroleum Exploration v. CommissionerUnited States Board of Tax Appeals · 1931