Baucum v. Commissioner
United States Board of Tax Appeals
1. Sale of royalty rights held to give rise to taxable gain. 2. Revenue received from sale of royalty interest held to be community income.
1Opinion of the Court
*1315OPINION.
Van Fossan:
The first issue is whether or not the petitioner is entitled, under the provisions of section 214 (10) of the Revenue Act of 1921, to deduct an allowance for depletion from the sum of $43,000 received by her as consideration for the conveyance of 75 per cent of her retained royalty interest. If she is entitled to such deduction, admittedly there is no income tax payable on said sum.
The petitioner argues that the courts of Louisiana, in which State the oil property is located, have held that grants of the right to drill for oil and reduce it to possession when found, are not…
2Cases cited9 opinions
- Ohio Oil Company v. IndianaSupreme Court of the United States · 1900
- Frost-Johnson Lumber Co. v. Salling's HeirsSupreme Court of Louisiana · 1922
- Phillips v. PhillipsSupreme Court of Louisiana · 1926
- Rives v. Gulf Refining Co.Supreme Court of Louisiana · 1913
- Peters v. KleinSupreme Court of Louisiana · 1926
4 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Turbeville v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1936
- Baucum v. CommissionerUnited States Board of Tax Appeals · 1929