[Code of Federal Regulations]
[Title 26, Volume 13]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR]

[Page 627]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Procedure and Administration--Table of Contents
 
Sec.  1.9003-2  Effect of election.

    (a) In general. If a taxpayer makes the election described in 
paragraph (b) of Sec.  1.9003-1, he shall be deemed to have consented to 
the application of section 302(b) of the Act with respect to all taxable 
years to which the election applies. Thus, subparagraph (F) of section 
613(c)(4) of the Internal Revenue Code of 1954 as amended must be 
applied in determining gross income from mining for the taxable years to 
which the election applies (including years subject to the Internal 
Revenue Code of 1939) whether or not the taxpayer is litigating the 
issue. Further, the election shall apply to all calcium carbonates or 
other minerals mined and used by the taxpayer in making cement.
    (b) Effect on gross income from mining. The election is only 
determinative of what constitutes ``mining'' for purposes of computing 
percentage depletion and has no effect on the method employed in 
determining the amount of gross income from mining. In applying the 
election to the years affected there shall be taken into account the 
effect that any adjustments resulting from the election shall have on 
other items affected thereby, such as charitable contributions, foreign 
tax credit, net operating loss, and the effect that adjustments to any 
such items shall have on other taxable years. The provisions of section 
302(b) of the Act are applicable with respect to taxable years subject 
to the Internal Revenue Code of 1939 for purposes of applying sections 
450 and 453 of that Code.

[T.D. 6492, 25 FR 8905, Sept. 16, 1960]

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