Fell v. Commissioner
United States Board of Tax Appeals
1. The petitioner acquired a one-fourth interest in an oil lease. Oil was not found in paying quantities, and the petitioner and his associates, within the taxable year, withdrew from the premises, removed all of their tools and equipment therefrom, and did not again enter upon the land or assert any rights therein.
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1. The petitioner acquired a one-fourth interest in an oil lease. Oil was not found in paying quantities, and the petitioner and his associates, within the taxable year, withdrew from the premises, removed all of their tools and equipment therefrom, and did not again enter upon the land or assert any rights therein. Held, the oil lease rights were abandoned in the taxable year. 2. The tools and equipment were sold and delivery made within the year, although the price to be paid was not arrived at and payment not made until subsequently. Held, the enterprise was wound up within the taxable…
1Opinion of the Court
*265OPINION.
Love : The primary question is whether or not there was an abandonment in 1919 by the petitioner and his associates of their interest in the oil lease. If there was an abandonment, was the loss which they sustained in their enterprise realized in 1919, in view of the fact that the amount of salvage was not determined until 1920 and payment therefor not received until 1920 and 1921 ?. The estate that a lessee acquires under the laws of Texas to secure the production of oil is determinable by abandonment. Abandonment is defined as the surrender or relinquishment of rights of property by…
2Cases cited6 opinions
- Grubb v. McAfeeTexas Supreme Court · 1919
- Sult v. A. Hochstetter Oil Co.West Virginia Supreme Court · 1908
- Robinson v. JacobsTexas Supreme Court · 1923
- J. M. Guffey Petroleum Co. v. Jeff Chaison Townsite Co.Court of Appeals of Texas · 1908
- Wisconsin-Texas Oil Co v. ClutterCourt of Appeals of Texas · 1924
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Boos v. CommissionerUnited States Board of Tax Appeals · 1934
- Buckeye Producing Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Chaparral Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Fell v. CommissionerUnited States Board of Tax Appeals · 1927
- Morand Bros. v. CommissionerUnited States Board of Tax Appeals · 1927