If an individual Indian reinvests income from allotted trust lands, are those earnings subject to federal income tax?

When exempt income is reinvested, the reinvestment income is subject to taxation. (Superintendent of Five Civilized Tribes v. Commissioner, 295 U. S. 418 (1935)). There is a distinction between income reinvested in the land and reinvestment income earned on funds not at all reinvested in the land - for instance, income used to improve the land to enhance future earnings, and income placed in the bank to earn interest.

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