Helvering v. Twin Bell Oil Syndicate’s Empirical Analysis

Citation profile

120 federal appellate · 11 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 275 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “***** “(m) Depletion. In the case of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case; such reasonable allowance in all cases to be made under rules and regulations to be prescribed by the Commissioner, with the approval of the Secretary. * * * ” Int.Rev.Code of 1939, § 23(m), 26 U.S.C.A. § 23 (m). “§ 114. Basis for depreciation and depletion * * * * * * <((b) Basis for depletion ****'♦ “(4) Percentage Depletion for coal ft * * “(A) In General. The allowance for depletion under section 23 (m) shall be, in the case of coal mines, 5 per centum, * * * of the gross income from the property during the taxable year, excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property. Such allowance shall not exceed 50 per centum of the net income of the taxpayer (computed without allowance for depletion) from the property * * Int.Rev.Oode of 1939, § 114 (b) (4), 26 TJ.S.O.A. § 114(b) (4).”

   2 later decisions quote this exact passage · from the majority
   e.g. Commissioner v. Mammoth Coal Co. · Ambassador Petroleum Co. v. Commissioner

2. ““At all events, as the section must be read in the light of the requirement of apportionment of a single depletion allowance, we are unable to say that the Commissioner erred in holding that for the purpose of computation ‘gross income from the property’ meant gross income from production less the amounts which the taxpayer was obliged to pay as royalties. The apportionment gives respondent 27% per cent, of the gross income from production which it had the right to retain and the assignor and lessor respectively 27% per cent, of the royalties they receive. Such an apportionment has regard to the economic interest of each of the parties entitled to participate in the depletion allowance.””

   2 later decisions quote this exact passage · from the majority
   e.g. Thomas v. Perkins · Crews v. Commissioner of Internal Revenue

3. ““Art. 201. Depletion of mines, oil and gas wells; depreciation of improvements. _ * * * “(c) A 'mineral property’ is the mineral deposit, the development and plant necessary for its extraction, and so much of the surface only as is reasonably expected to be underlaid with the mineral. The value of a mineral property is the combined value of its component parts. “(d) A 'mineral deposit’ refers to minerals only, such as the ores only in the case of a mine, to the oil only in the case of an oil well, *' * * “(e) ‘Minerals’ include ores of the metals, coal, oil, gas, and * * * “(h) ‘Depletion allowance in case of discovery’: The deduction for depletion in case of the discovery of a mine shall not exceed 50 per cent of the net income, computed without allowance for depletion, from the property upon which the discovery is made, except that in no case shall the depletion allowance be less than it would be if computed without reference to discovery value. The phrase ‘net income of the taxpayer (computed without allowance for depletion)’ means the gross income from the sale of all mineral products from the mining property and any other income incidental to the operation of the property for the production of the mineral products, less the deductions in respect to the property upon which the discovery is made, including operating expenses, depreciation, taxes, losses sustained, etc., but excluding any allowance for depletion.” (Italics our own.)”

   1 later decision quote this exact passage · from the majority
   e.g. Ambassador Petroleum Co. v. Commissioner