Rust-Owen Lumber Co. v. Commissioner
United States Board of Tax Appeals
1. Value of timber reserves as of March 1, 1913, must be determined upon facts known, or reasonably to have been anticipated at that time.
Read the full summary
1. Value of timber reserves as of March 1, 1913, must be determined upon facts known, or reasonably to have been anticipated at that time. J. J. White Lumber Co.,24 B.T.A. 274, followed. 2. Overrun of about 11 percent in aggregate cut over aggregate estimate is not "gross error" as to any fact known at the basic date nor cause for revaluation of reserves. 3. Respondent's action in reducing the unit rate of depletion so that basic value may be extinguished upon exhaustion of reserves, approved.
1Opinion of the Court
OPINION.
GoodRioh :
The issue in these proceedings, which were consolidated for hearing, relates to the amount of allowance for depletion of timber to be deducted from petitioner’s income for each of the years 1927, 1928, and 1929. In its returns petitioner claimed allowances computed upon its cuttings in those years at rates of $14 per thousand feet for pine and $4 for hardwood and hemlock. Although he allowed those rates in prior years, respondent reduced them to $7.5976 for pine and $2,042 for hardwood and hemlock in computing the depletion allowances for 1927 and 1928, and reduced them…
2Cases cited3 opinions
- J. J. White Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Sterling Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Rayville Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by2 opinions
- Cape Henry Syndicate v. CommissionerUnited States Board of Tax Appeals · 1934
- Rust-Owen Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1934