JEFFERSON LAKE SULPHUR COMPANY v. LAMBERT

Civ. A. Nos. 4406 and 4407.

133 F.Supp. 197 (1955)

JEFFERSON LAKE SULPHUR COMPANY, Plaintiff, v. George A. LAMBERT et al., and United States of America, Defendants.

United States District Court E. D. Louisiana, New Orleans Division.

June 27, 1955.


Attorney(s) appearing for the Case

Deutsch, Kerrigan & Stiles, Rene H. Himel, Jr., New Orleans, La., for plaintiff.

George R. Blue, Prim B. Smith, Jr., New Orleans, La., for the United States.


WRIGHT, District Judge.

Plaintiff is suing for refund of income taxes. The question presented is whether the $7,500 quarterly payments made by the taxpayer during the primary term of a sulphur lease are deductible as lease rentals or advance royalties or whether such payments must be capitalized as leasehold costs and recovered through the depletion allowance under § 23(m)1 of the Internal...

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