Citizens Nat'l Bank v. Commissioner
United States Board of Tax Appeals
On March 1, 1913, a partnership of which petitioners were members was, under an oral lease for a term of 15 years, engaged in mining coal from certain land situated in Pennsylvania. The oral lease was, on April 21, 1913, reduced to writing. Under the law of Pennsylvania the members of the partnership were, under the oral lease, only lessees at will.
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On March 1, 1913, a partnership of which petitioners were members was, under an oral lease for a term of 15 years, engaged in mining coal from certain land situated in Pennsylvania. The oral lease was, on April 21, 1913, reduced to writing. Under the law of Pennsylvania the members of the partnership were, under the oral lease, only lessees at will. Under such circumstances, it is held that the oral lease had no fair market value on March 1, 1913, and it is further held that the lease agreement of April 21, 1913, is not subject to depletion or exhaustion deductions, it having cost the…
1Opinion of the Court
*1317OPINION.
Love:
The Commissioner, in denying the Fredericktown Coal & Oftke Co., a partnership of which the petitioners are three of six members, the right to deductions from income f.or the years in question on account of depletion of the leasehold acquired from Peirsell on the 135 acres of coal land, takes the-position (1) that the partnership did not obtain the lease until subsequent to March 1, 1913, and having paid nothing therefor it is not, under the provisions of *1318section 214(a) (10) of the Revenue Act of 1918,1 subject to deductions for depletion, and (2) that the lease, if acquired…
2Cases cited4 opinions
- Dumn v. RothermelSupreme Court of Pennsylvania · 1886
- Walter v. TransueSuperior Court of Pennsylvania · 1903
- King v. MyersSuperior Court of Pennsylvania · 1915
- Tuttleman v. BeetemSuperior Court of Pennsylvania · 1911
3Cited by1 opinion
- Citizens Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1928