[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.465-1T]

[Page 283-284]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.465-1T  Aggregation of certain activities (temporary).

    (a) General rule. A partner in a partnership or an S corporation 
shareholder may aggregate and treat as a single activity--
    (1) The holding, production, or distribution of more than one motion 
picture film or video tape by the partnership or S corporation,
    (2) The farming (as defined in section 464 (e)) of more than one 
farm by the partnership or S corporation,
    (3) The exploration for, or exploitation of, oil and gas resources 
with respect to more than one oil and gas property by the partnership or 
S corporation, or
    (4) The exploration for, or exploitation of, geothermal deposits 
(within the meaning of section 613(e)(3)) with respect to more than one 
geothermal property by the partnership or S corporation.

Thus, for example, if a partnership or S corporation is engaged in the 
activity of exploring for, or exploiting, oil and gas resources with 
respect to 10 oil and gas properties, a partner or S corporation 
shareholder may aggregate those properties and treat the aggregated oil 
and gas activities as a single activity. If that partnership or S 
corporation

[[Page 284]]

also is engaged in the activity of farming with respect to two farms, 
the partner or shareholder may aggregate the farms and treat the 
aggregated farming activities as a single separate activity. Except as 
provided in section 465(c)(2)(B)(ii), the partner or shareholder cannot 
aggregate the farming activity with the oil and gas activity.
    (b) Effective date. This section shall apply to taxable years 
beginning after December 31, 1983 and before January 1, 1985.

(Secs. 465(c)(2)(B) and 7805 of the Internal Revenue Code of 1954 (98 
Stat. 814, 68A Stat. 917; 26 U.S.C. 465(c)(2)(B) and 7805))

[T.D. 8012, 50 FR 9614, Mar. 11, 1985]