Gates Rubber Company, and Subsidiaries v. Commissioner of Internal Revenue

U.S. Court of Appeals for the Tenth Circuit December 3, 1982

Gates Rubber Company, and Subsidiaries v. Commissioner of Internal Revenue, 694 F.2d 648 (10th Cir. 1982)

51 A.F.T.R.2d (RIA) 628; 1982 U.S. App. LEXIS 23620

Opinion

PER CURIAM.

In this appeal we are asked to decide whether the costs of drilling offshore exploratory oil and gas wells from mobile rigs are deductible in the year in which they are incurred as “intangible drilling and development costs” under 26 U.S.C. § 263(c) and Treas.Reg. § 1.612-4(a) (“the IDC option”). The Tax Court, 74 T.C. 1456, ruled in favor of the taxpayer and against the Commissioner.

All parties agree that the issue in this case is identical with the prior consideration of this issue by the Third Circuit in Sun Co. v. Commissioner, 677 F.2d 294 (3rd Cir. 1982). The Third Circuit held for the taxpayer. We agree with the Third Circuit.

AFFIRMED.

Reference

Full Case Name: GATES RUBBER COMPANY, AND SUBSIDIARIES, Appellee, v. COMMISSIONER OF INTERNAL REVENUE, Appellant
Cited By: 7 cases
Status: Published