¶1concurring: I concur in the result because I believe the issue of whether the ad valorem property taxes on the mineral in place paid by the lessee is includable in petitioners-lessors’ gross income from mining for depletion purposes where there has been production is controlled by our decisions in Winifred E. Riggins, 33 T.C. 161; see also Callahan Mining Corp., 51 T.C. 1005; and because respondent waived any claim that the taxes were not includable in petitioners’ gross income from mining in the years when there was no production from a particular property. I think it would be unfortunate, however, if the majority opinion is considered to stand for the proposition that the taxes mentioned above are includable in gross income from mining regardless of production or the amount thereof because the specific issue of whether those taxes are includable when there was no production during the taxable year was not argued. See the last paragraph of the opinion of the Court of Claims in Handelman v. United States, 357 F.2d 694, 704.
54 T.C. 569
McLean v. Commissioner
Decided March 23, 1970
United States Tax Court · decided 1970-03-23
Petitioners are trust beneficiaries of a trust which during the years in question was the lessor in certain mining leases. Held: the issue is ruled by our opinion in Winifred E. Higgins, 33 T.C. 161, that the petitioners, who are in the position of lessors, may include within their depletable gross income the amount of ad valorem taxes on the minerals in place paid by the lessees during the years in issue pursuant to the terms of the leases.
Cited by 2 later decisions — most recently June 1971
1 federal appellate ·
Relies on Handelman v. United States · Higgins v. Commissioner · Callahan Mining Corp. v. Commissioner
Good law ✅— No negative treatment on recordhow we know
Decisions will be entered under Rule 50 · Decided 1970-03-23
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