The taxpayer sold mining company shares and was to be paid royalties as ore from the mine was extracted Corporation. Since the factual issues of whether ore would be extracted and if so, how much and when were so vague, the court found that the contract before, royalties could not be assessed. There was no “realization.” Recognition postponed until the payments are actually received.

The taxpayer sold mining company shares and was to be paid royalties as ore from the mine was extracted Corporation. Since the factual issues of whether ore would be extracted and if so, how much and when were so vague, the court found that the contract before, royalties could not be assessed. There was no “realization.” Recognition postponed until the payments are actually received.
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from
Henry B. Reiling
Source: Harvard Business School
3 pages.
Publication Date: Dec 27, 1984. Prod #: 285086-PDF-ENG
Burnet vs. Logan HBR case solution