Arkansas-Oklahoma Gas Co. v. Commissioner
United States Tax Court
For 1944 and 1945, petitioner claims deductions for amortization of the intangible drilling and development costs of three gas wells under section 124 of the Code. A Necessity Certificate had been issued in 1941 with respect to such wells. Respondent denied this deduction, and allowed some depletion in lieu thereof on the theory that such costs are not subject to amortization, but are covered by section 23 (m) of the Code.
Read the full summary
For 1944 and 1945, petitioner claims deductions for amortization of the intangible drilling and development costs of three gas wells under section 124 of the Code. A Necessity Certificate had been issued in 1941 with respect to such wells. Respondent denied this deduction, and allowed some depletion in lieu thereof on the theory that such costs are not subject to amortization, but are covered by section 23 (m) of the Code. Held, intangible drilling and development costs of a natural resource are not deductible under section 124 of the Code providing for special amortization of emergency…
1Opinion of the Court
OPINION.
Rice, Judge:
The Commissioner determined deficiencies in income tax for the years 1944 and 1945 in the amounts of $6,729.51 and $7,975.12, respectively.
The sole issue is whether petitioner is entitled to amortize intangible drilling and development costs of three gas wells under section 124 of the Code or whether such costs are recoverable as depletion under section 23 (m) of the Code. All of the facts were stipulated.
The stipulated facts are so found, and are incorporated herein.
Petitioner is a Delaware corporation authorized to do business in Arkansas and Oklahoma. It was…
2Cases cited3 opinions
- Choate v. CommissionerSupreme Court of the United States · 1945
- Corona Coal Co. v. United StatesDistrict Court, N.D. Alabama · 1927
- United States v. Corona Coal Co.Court of Appeals for the Fifth Circuit · 1928
3Cited by8 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Fort Howard Corp. v. CommissionerUnited States Tax Court · 1994
- Arkansas-Oklahoma Gas Co. v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Eighth Circuit · 1953
- National Lead Co. v. CommissionerUnited States Tax Court · 1955
- Arkansas-Oklahoma Gas Co. v. CommissionerUnited States Tax Court · 1952
3 more not listed; retrieve them via the Exa API.