[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.614-0]

[Page 467-468]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.614-0  Introduction.

    Section 614 relates to the definition of property and to the various 
special rules by means of which taxpayers are permitted to aggregate or 
combine separate properties or to treat such properties as separate. 
These rules are set forth in detail in Sec. Sec. 1.614-1 through 1.614-
8. Section 1.614-1 sets forth rules under section 614(a) relating to the 
definition of the term property. Section 1.614-2 contains the rules 
relating to the election under section 614(b), as it existed prior to 
its amendment by section 226(a) of the Revenue Act of 1964, to aggregate 
operating mineral interests. In the case of mines, the rules contained 
in Sec. 1.614-2 are applicable

[[Page 468]]

only to taxable years beginning before January 1, 1958, to which the 
Internal Revenue Code of 1954 applies. In the case of oil and gas wells, 
the rules contained in Sec. 1.614-2 are applicable only to taxable 
years beginning before January 1, 1964, to which the Internal Revenue 
Code of 1954 applies. In the case of oil and gas wells, the taxpayer 
may, however, for taxable years beginning before January 1, 1964, treat 
any operating mineral interests as if section 614 (a) and (b) (as it 
existed prior to its amendment by section 226(a) of the Revenue Act of 
1964) had not been enacted. If any operating mineral interests are so 
treated, the rules contained in Sec. 1.614-2 are not applicable to such 
interests and such interests are, in respect of taxable years beginning 
before January 1, 1964, subject to the rules set forth in Sec. 1.614-4 
relating to the Internal Revenue Code of 1939 treatment of separate 
operating mineral interests in the case of oil and gas wells. Section 
1.614-3 prescribes the rules relating to the election under section 
614(c)(1) permitting the aggregation of operating mineral interests in 
the cases of mines for taxable years beginning after December 31, 1957. 
Section 1.614-3 also sets forth rules relating to the election under 
section 614(c)(2) in the case of mines by means of which a taxpayer is 
permitted to treat a single operating mineral interest as more than one 
such interest for taxable years beginning after December 31, 1957. At 
the election of the taxpayer with respect to an operating unit, the 
rules contained in Sec. 1.614-3 are also applicable to taxable years 
beginning before January 1, 1958, to which the Internal Revenue Code of 
1954 applies. If the taxpayer makes such an election, the rules 
contained in Sec. 1.614-2 are not applicable to any of the operating 
mineral interests which are part of the operating unit with respect to 
which the election described in Sec. 1.614-3 is made. Section 1.614-5 
sets forth the rules relating to the aggregation of nonoperating mineral 
interests. Section 1.614-6 contains the rules relating to basis, holding 
period, and abandonment and casualty losses where properties have been 
aggregated or combined. Section 1.614-7 relates to the extension of time 
for performing certain acts. Section 1.614-8 contains the rules relating 
to the elections under section 614(b) as amended by section 226(a) of 
the Revenue Act of 1964 to treat separate operating mineral interests in 
the case of oil and gas wells as separate properties or in combination 
for taxable years beginning after December 31, 1963.

[T.D. 6859, 30 FR 13699, Oct. 28, 1965]