James A. Lewis Engineering, Inc. v. Commissioner
United States Tax Court
Held, where petitioner's rights to certain interests in an oil lease were conditional and qualified in 1953, the fair market value of the interests was not taxable income in 1953 under the doctrine of constructive receipt of income.
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Held, where petitioner's rights to certain interests in an oil lease were conditional and qualified in 1953, the fair market value of the interests was not taxable income in 1953 under the doctrine of constructive receipt of income. Petitioner did not have unfettered command and was not free to enjoy the interests at his option until 1957. Held, further, the fair market value of the interests received in the oil lease was ordinary income subject to depletion in 1957 and the services rendered by petitioner as consideration for the interests did not represent petitioner's capital investment in…
1Opinion of the Court
OPINION.
Black, Judge:
Preliminary Statement.
We should make it plain at the outset that we are not dealing here with the $35,000 which petitioner received for its services in making a preliminary survey of the advisability and practicability of installing a waterflood program on the Seay lease. So far as the record shows that payment was received by petitioner in cash in a prior year and was returned as gross income in that year and it is not in issue here. Petitioner received no assignment of mineral interests in the Seay lease hi connection with that $35,000 payment. What we do have in issue…
2Cases cited5 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Palmer v. BenderSupreme Court of the United States · 1932
- Anderson v. HelveringSupreme Court of the United States · 1940
- Johnston v. CommissionerUnited States Tax Court · 1950
- Page Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1940
3Cited by10 opinions
- Brooks v. CommissionerUnited States Tax Court · 1968
- Producers Chemical Co. v. CommissionerUnited States Tax Court · 1968
- Cline v. CommissionerUnited States Tax Court · 1977
- Brooks v. CommissionerUnited States Tax Court · 1968
- Cline v. CommissionerUnited States Tax Court · 1977
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