Patrick Flueckiger's Blog (1)

Cost Depletion: A Valuable Tax Deduction for Royalty Owners



Owners of minerals and royalties may be interested to learn that the Internal Revenue Code "IRC" allows a deduction known as “depletion” for oil & gas income. The depletion deduction could significantly reduce a royalty owner's income tax bill. Since a mineral interest runs out eventually (because the production 'depletes' the reserves in the ground), the IRC allows the taxpayer to claim a deduction for the decreased value of the property caused by production of minerals. One…

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Added by Patrick Flueckiger on February 12, 2018 at 10:30am — No Comments

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