Barnes v. Commissioner
United States Board of Tax Appeals
1. The basis for determining the amount of exhaustion deductible from gross income in income-tax returns of estates of deceased persons during the period of administration or settlement of the estate is the value of the exhaustible property at the date of death. 2. Rights to receive royalties over a given term held to be exhaustible property. 3. Taxes paid at the source constitute credits against the total tax and the balance of the tax paid by an estate is the amount…
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1. The basis for determining the amount of exhaustion deductible from gross income in income-tax returns of estates of deceased persons during the period of administration or settlement of the estate is the value of the exhaustible property at the date of death. 2. Rights to receive royalties over a given term held to be exhaustible property. 3. Taxes paid at the source constitute credits against the total tax and the balance of the tax paid by an estate is the amount against which the allowance under section 1200(a) of the Revenue Act of 1924 should be calculated.
1Opinion of the Court
*364OPINION.
Smith:
The petitioners, being the estates of Philip M. Reynolds and Mary G. Reynolds, claim the right to deduct from gross income of the estates for taxable portions of the calendar year 1923 amounts *365for exhaustion of the contracts under which they received large amounts of royalties during the periods in question; they claim this right on the basis of the value of the contracts at the dates of death of the decedents, which is alleged to be at least $225,000 in each case.
The contentions of the petitioners are denied by the respondent, who contends (1) that the values of the royalty…
2Cited by7 opinions
- Tolwinsky v. CommissionerUnited States Tax Court · 1986
- Barnes v. CommissionerUnited States Board of Tax Appeals · 1927
- Hartley v. CommissionerUnited States Board of Tax Appeals · 1933
- Himelhoch Bros. & Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Pierce v. CommissionerUnited States Board of Tax Appeals · 1931
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