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Swank decision: economic interest in coal not dependent on lease terminability

Journal Article · · Nat. Resour. J.; (United States)
OSTI ID:6208972

Taxpayers investing in a mineral in place in anticipation of receiving income from its extraction were denied the percentage depletion deduction if their leases have a 30-day termination under current law. Conflict over the economic effect of terminability on the lessee was resolved in United States vs Swank. The Court held that the lessee retained an economic interest in his coal mine despite the right of termination. The decision has implications for tax planning and litigation as well as for judicial activism. 64 references. (DCK)

OSTI ID:
6208972
Journal Information:
Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 23:1; ISSN NRJOA
Country of Publication:
United States
Language:
English

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