C. H. Mead Coal Co. v. Commissioner
United States Board of Tax Appeals
A taxpayer on the accrual basis subleased coal lands, reserving, in addition to royalties payable to the original lessor, a tonnage royalty of 5 cents per ton for each ton of coal mined, and, pursuant to the contract, received without restriction as to their disposition, use, or enjoyment lump sums as advance payments on such tonnage royalty. No coal was mined and no part of the advance payments was earned in the year in which the payments were received.
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A taxpayer on the accrual basis subleased coal lands, reserving, in addition to royalties payable to the original lessor, a tonnage royalty of 5 cents per ton for each ton of coal mined, and, pursuant to the contract, received without restriction as to their disposition, use, or enjoyment lump sums as advance payments on such tonnage royalty. No coal was mined and no part of the advance payments was earned in the year in which the payments were received. Held, the advance payments constituted income of the taxpayer for the year in which they were actually received.
1Opinion of the Court
OPINION.
Murdock :
The Commissioner determined a deficiency of $6,196.37 in the petitioner’s income tax for 1930. The parties are now prepared to settle four of the five issues raised. They agree that a depreciation question and a loss question are settled by a recent decision of the Circuit Court in the case of this same taxpayer. The only question for decision is whether or not the Commissioner erred in including in income for 1930, $25,000 received in that year from *191the Lillybrook Coal Co. under a written agreement for the mining of coal. There is no dispute about the facts relating to this…
2Cases cited1 opinion
- Brown v. HelveringSupreme Court of the United States · 1934
3Cited by4 opinions
- Perfumers Mfg. Corp. v. CommissionerUnited States Tax Court · 1959
- C. H. Mead Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Grauman's Greater Hollywood Theatre v. CommissionerUnited States Board of Tax Appeals · 1938
- Perfumers Mfg. Corp. v. CommissionerUnited States Tax Court · 1959