Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 54-42

1954-1 C.B. 64

Sec. 167

Sec. 702

Caution:Amplified by Rev. Rul. 56-634

Full Text

Rev. Rul. 54-42

The election to charge to expense intangible drilling and development costs incurred in connection with the oil operations of a partnership that files its return and computes its income on Form 1065 is exercisable by the partnership. The partnership election is controlling irrespective of the elections of the individual partners as to their own operations. See Bentex Oil Corporation v. Commissioner , 20 T.C. 565; I.T. 3713, C.B. 1945, 178.