26 U.S.C. § 611
Allowance of deduction for depletion
# (a) General rule
In the case of mines, oil and gas wells, other natural deposits, and timber, there shall be allowed as a deduction in computing taxable income a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case; such reasonable allowance in all cases to be made under regulations prescribed by the Secretary. For purposes of this part, the term “mines” includes deposits of waste or residue, the extraction of ores or minerals from which is treated as mining under section 613(c). In any case in which it is ascertained as a result of operations or of development work that the recoverable units are greater or less than the prior estimate thereof, then such prior estimate (but not the basis for depletion) shall be revised and the allowance under this section for subsequent taxable years shall be based on such revised estimate.
# (b) Special rules
(1) Leases In the case of a lease, the deduction under this section shall be equitably apportioned between the lessor and lessee.
(2) Life tenant and remainderman In the case of property held by one person for life with remainder to another person, the deduction under this section shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant.
(3) Property held in trust In the case of property held in trust, the deduction under this section shall be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each.
(4) Property held by estate In the case of an estate, the deduction under this section shall be apportioned between the estate and the heirs, legatees, and devisees on the basis of the income of the estate allocable to each.
# (c) Cross reference
For other rules applicable to depreciation of improvements, see section 167.
Source: view the official text
Cited by 78
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- 26 CFR § 1.1245-2 — Definition of recomputed basis.
- 26 CFR § 1.1254-1 — Treatment of gain from disposition of natural resource recapture property.
- 26 CFR § 1.1254-4 — Special rules for S corporations and their shareholders.
- 26 CFR § 1.1254-5 — Special rules for partnerships and their partners.
- 26 CFR § 1.162-12 — Expenses of farmers.
- 26 CFR § 1.163(j)-1 — Definitions.
- 26 CFR § 1.167(a)-2 — Tangible property.
- 26 CFR § 1.167(i)-1 — Depreciation of improvements in the case of mines, etc.
- 26 CFR § 1.174-2 — Definition of research and experimental expenditures.
- 26 CFR § 1.362-2 — Certain contributions to capital.
- 26 CFR § 1.381(c)(18)-1 — Depletion on extraction of ores or minerals from the waste or residue of prior mining.
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- 26 CFR § 1.415(d)-1 — Cost-of-living adjustments.
- 26 CFR § 1.46-4 — Limitations with respect to certain persons.
- 26 CFR § 1.543-1 — Personal holding company income.
- 26 CFR § 1.56(g)-1 — Adjusted current earnings.
- 26 CFR § 1.57-1 — Items of tax preference defined.
- 26 CFR § 1.57-4 — Limitation on amounts treated as items of tax preference for taxable years beginning before January 1, 1976.
- 26 CFR § 1.58-2 — General rules for conduit entities; partnerships and partners.
- 26 CFR § 1.61-8 — Rents and royalties.
- 26 CFR § 1.611-0 — Regulatory authority.
- 26 CFR § 1.611-1 — Allowance of deduction for depletion.
- 26 CFR § 1.611-2 — Rules applicable to mines, oil and gas wells, and other natural deposits.
- 26 CFR § 1.611-5 — Depreciation of improvements.
- 26 CFR § 1.612-1 — Basis for allowance of cost depletion.
- 26 CFR § 1.613-1 — Percentage depletion; general rule.
- 26 CFR § 1.613-2 — Percentage depletion rates.
- 26 CFR § 1.613-4 — Gross income from the property in the case of minerals other than oil and gas.
- 26 CFR § 1.613A-1 — Post-1974 limitations on percentage depletion in case of oil and gas wells; general rule.
- 26 CFR § 1.613A-2 — Exemption for certain domestic gas wells.
- 26 CFR § 1.613A-3 — Exemption for independent producers and royalty owners.
- 26 CFR § 1.613A-4 — Limitations on application of § 1.613A-3 exemption.
- 26 CFR § 1.613A-7 — Definitions.
- 26 CFR § 1.617-1 — Exploration expenditures.
- 26 CFR § 1.617-3 — Recapture of exploration expenditures.
- 26 CFR § 1.62-1T — Adjusted gross income (temporary).
- 26 CFR § 1.631-1 — Election to consider cutting as sale or exchange.
- 26 CFR § 1.631-2 — Gain or loss upon the disposal of timber under cutting contract.
- 26 CFR § 1.631-3 — Gain or loss upon the disposal of coal or domestic iron ore with a retained economic interest.
- 26 CFR § 1.636-1 — Treatment of production payments as loans.
- 26 CFR § 1.636-4 — Effective dates of section 636.
- 26 CFR § 1.638-1 — Continental Shelf areas.
- 26 CFR § 1.703-1 — Partnership computations.
- 26 CFR § 1.704-1 — Partner's distributive share.
- 26 CFR § 1.705-1 — Determination of basis of partner's interest.
- 26 CFR § 1.7704-4 — Qualifying income—mineral and natural resources.
- 26 CFR § 1.804-4 — Investment yield of a life insurance company.
- 26 CFR § 1.9003-1 — Election to have the provisions of section 613(c) (2) and (4) of the 1954 Code, as amended, apply for past years.
- 26 CFR § 1.901-2 — Income, war profits, or excess profits tax paid or accrued.
- 26 CFR § 1.901-2A — Dual capacity taxpayers.
- 26 CFR § 1.901-3 — Reduction in amount of foreign taxes on foreign mineral income allowed as a credit.
- 26 CFR § 1.907(c)-1 — Definitions relating to FOGEI and FORI (for taxable years beginning after December 31, 1982).
- 26 CFR § 1.995-5 — Foreign investment attributable to producer's loans.
- 26 CFR § 15.1-3 — Elections as to method of recapture.
- 26 CFR § 3.2 — Ceiling on deposits.
- 26 CFR § 301.7803-2 — Internal Revenue Service Independent Office of Appeals resolution of Federal tax controversies without litigation.
- 26 CFR § 301.9100-7T — Time and manner of making certain elections under the Tax Reform Act of 1986.
- 26 CFR § 601.105 — Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.
- 26 CFR § 601.201 — Rulings and determinations letters.
- 26 U.S.C. § 1254 — Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
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