WOOD v. UNITED STATES

No. 22693.

377 F.2d 300 (1967)

Nathaniel C. WOOD and Gertrude L. Wood, Appellants, v. UNITED STATES of America, Appellee.

United States Court of Appeals Fifth Circuit.

May 11, 1967.


Attorney(s) appearing for the Case

Clarence P. Brazill, Jr., Nelson, McCleskey & Harriger, Lubbock, Tex., for appellants.

Mitchell Rogovin, Asst. Atty. Gen., John B. Jones, Jr., Act. Asst. Atty. Gen., Dept. of Justice, Lee A. Jackson, Meyer Rothwacks, Melva M. Graney, Crombie J. D. Garrett, Attys., Dept. of Justice, Washington, D. C., Melvin M. Diggs, U. S. Atty., Dallas, Tex., Richard M. Roberts, Acting Asst. Atty. Gen., Washington, D. C., for appellee.

Before RIVES, BELL and THORNBERRY, Circuit Judges.


THORNBERRY, Circuit Judge:

This appeal presents a question of proper tax treatment of compensation received under a contract permitting removal of sand and gravel from appellant taxpayer's land. Taxpayer argues that the contract was in essence a sale of the minerals in place and that payment received should be taxed as long-term capital gains. The government argues that the contract constituted a mineral lease and that the payments received are taxable as ordinary...

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