Rev. Rul. 58-593

The Internal Revenue Service has reconsidered the definition of gypsum for percentage depletion purposes under section 114(b)(4)(A)(i) of the Internal Revenue Code of 1939.

Revenue Ruling 55-67, C. B. 1955-1, 357, holds that gypsum, in its natural state, is a mineral which may occur in rocklike masses but is very soft and rarely mined or used as stone for ordinary commercial purposes. Therefore, it is not to be classified as "stone" unless it is used, or sold for use, by the mine owner or operator as "stone."

In the case of United States Gypsum Company v. United States, 253 Fed. (2d) 738, the United States Court of Appeals for the Seventh Circuit held that gypsum is "stone" regardless of its use.

In view of the above, it is now the position of the Service that gypsum is "stone" within the meaning of that word as it is used in section 114(b)(4)(A)(i) of the Code.

Revenue Ruling 55-67, supra, is hereby revoked.