Search Supreme Court Cases
UNITED STATES V. DAKOTA-MONTANA OIL CO., 288 U. S. 459 (1933)
U.S. Supreme Court
United States v. Dakota-Montana Oil Co., 288 U.S. 459 (1933)
United States v. Dakota-Montana Oil Co.
Argued February 8, 1933
Decided March 13, 1933
288 U.S. 459
Section 234(a)(8) of the Revenue Act of 1926, provides that, in the case of oil wells, the taxpayer shall have, as a deduction from gross income, "a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions of each case," to be made under departmental rules and regulations. Section 204 permits the taxpayer to calculate depletion on the basis of cost alone, or else to deduct an arbitrary allowance, fixed by the statute, without reference to cost or discovery value at 27% of gross income from the well. Held, construing these in the light of earlier provisions and administrative construction, that the capitalized cost of drilling, as distinguished from cost of physical property such as machinery, tools, equipment, pipes, etc., is subject to depletion allowance, and not to depreciation allowance. Pp. 288 U. S. 460, 288 U. S. 466.
59 F.2d 853, reversed.
Certiorari, 287 U.S. 591, to review a judgment against the United States on a claim for money collected as income taxes.
Official Supreme Court caselaw is only found in the print version of the United States Reports. Justia caselaw is provided for general informational purposes only, and may not reflect current legal developments, verdicts or settlements. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or information linked to from this site. Please check official sources.