Quimbee logo
DMCA.com Protection Status
From our private database of 18,300+ case briefs...

Commissioner v. P. G. Lake, Inc.

United States Supreme Court
356 U.S. 260 (1958)


P. G. Lake, Inc. (Lake) (plaintiff), an oil and gas production company, sold certain oil interests for a lump sum of $600,000. Lake retained title to the property that generated the oil. The purchaser of the oil interests was entitled to receive the remaining payments on certain leases, which would amount to $600,000 over a three-year period, plus 3 percent interest on the unpaid lease amount. On its federal tax return, Lake reported the proceeds from selling these oil interests as a capital gain from the sale of long-term assets. The federal tax commissioner (commissioner) (defendant) determined a deficiency in Lake’s taxes, finding that the sales proceeds constituted ordinary income. Lake petitioned the United States Tax Court for a redetermination. The tax court ruled for Lake, and the commissioner appealed. The court of appeals affirmed the tax court’s decision. The United States Supreme Court granted certiorari.

Rule of Law


Holding and Reasoning (Douglas, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 486,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 486,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,300 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial