Johnson Inv. & Rental Co. v. Commissioner
United States Tax Court
P "leased" certain property to X, which operated a quarry thereon and paid P 5 cents for each ton of rock sold by it from stone quarried on the premises. Held, the payments by X were mineral royalties within the meaning of sec. 543, I.R.C. 1954, and as a result, P was a personal holding company subject to tax under sec. 541, I.R.C. 1954. Held, further, the amount of P's deduction for qualified indebtedness determined.
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioner’s Federal corporate income taxes:
Year ending Year ending
Jan. 31— Deficiency Jan. 31— Deficiency
1966 . $14,927.21 1969 . $13,228.97
1967 . ..10,394.73 1970 . ..12,036.84
1968 . ... 8,394.88 1971 . ...3,198.80
Each party has conceded certain issues. The issues remaining for decision are: (1) Whether the petitioner received royalties within the meaning of section 543 of the Internal Revenue Code of 19541 as a result of a “lease” allowing the tenant to quarry minerals on the leased premises and requiring a…
2Cases cited14 opinions
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Burnet v. HarmelSupreme Court of the United States · 1932
- Aquilino v. United StatesSupreme Court of the United States · 1960
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Palmer v. BenderSupreme Court of the United States · 1932
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3Cited by3 opinions
- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1985
- Johnson Inv. & Rental Co. v. CommissionerUnited States Tax Court · 1978
- Pleasanton Gravel Co. v. CommissionerUnited States Tax Court · 1985