New Idria Quicksilver Mining Co. v. Commissioner
United States Tax Court
1. The basis for computing percentage depletion on quicksilver mines for 1939, 1940, and 1941 held to be the market value of the cinnabar ore, from which the quicksilver was extracted, at the mouth of the mines and not the market value of the quicksilver in flasks, as reflected in gross sales thereof. 2. Percentage depletion deductions held not allowable on income derived from processing "dump" ores which were deposited on taxpayer's premises by prior owners and operators of…
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1. The basis for computing percentage depletion on quicksilver mines for 1939, 1940, and 1941 held to be the market value of the cinnabar ore, from which the quicksilver was extracted, at the mouth of the mines and not the market value of the quicksilver in flasks, as reflected in gross sales thereof. 2. Percentage depletion deductions held not allowable on income derived from processing "dump" ores which were deposited on taxpayer's premises by prior owners and operators of the mine. Carl M. Britt, 43 B. T. A. 254, and Consolidated Chollar Gould & Savage Mining Co., 46 B. T. A. 241,…
1Opinion of the Court
OPINION.
Smith, Judge:
Our first question is the determination of the correct basis to be used in computing percentage depletion deductions on petitioners’ quicksilver mines. Petitioners contend that the correct basis is the market value of the mercury in flasks, as reflected in the gross sales of mercury in each of the taxable years. The respondent contends that it is the market value of the cinnabar ore, from which the mercury was obtained, at the mouth of the mines, arrived at by deducting from gross sales of mercury the cost of processing the ore, including furnacing, condensing, cleaning,…
2Cases cited6 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Anderson v. HelveringSupreme Court of the United States · 1940
- Merchants' Loan & Trust Co. v. SmietankaSupreme Court of the United States · 1921
- Helvering v. Mountain Producers Corp.Supreme Court of the United States · 1938
- Helvering v. Twin Bell Oil SyndicateSupreme Court of the United States · 1934
1 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Chicago Mines Co. v. CommissionerUnited States Tax Court · 1946
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1954
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1954
- Black Mountain Corp. v. CommissionerUnited States Tax Court · 1954
- Chicago Mines Co. v. CommissionerUnited States Tax Court · 1946
1 more not listed; retrieve them via the Exa API.