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

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

U.S. Court of Appeals for the Tenth Circuit · Decided December 3, 1982 · Barrett, McKay, Logan

694 F.2d 648; 51 A.F.T.R.2d (RIA) 628; 1982 U.S. App. LEXIS 23620 (Federal Reporter, Second Series)

Counsel

George L. Hastings, Jr., Tax Div., Dept, of Justice, Washington, D.C. (with John F. Murray, Acting Asst. Atty. Gen., Michael L. Paup and Gary R. Allen, Tax Div., Dept, of Justice, Washington, D.C., on the brief), for appellant., Buford P. Berry, Dallas, Tex. (with J.W. Bullion and Emily A. Parker, Dallas, Tex., on the brief), of Thompson & Knight, Dallas, Tex., for appellee.

Cases that cite this one

2 later published cases cite this decision.

Gulf Oil Corp. v. Commissioner (United States Tax Court 1986)
Seligman v. Commissioner (United States Tax Court 1985)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

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.

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