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cost depletion

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cost depletion
Depletion calculated as a percentage of the original cost of a natural resource that is consumed during a period. See also percentage depletion.

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; (3) additional itemized deductions normally allowed for individuals; (4) losses on sales or exchanges of capital assets, except to the extent of gains from such sales; or (5) depletion in excess of cost depletion.
For property placed in service in tax years beginning after 1989, depletion must be determined under the cost depletion method.
Depletion must be determined under the cost depletion method for property placed in service in tax years beginning after 1989.
 
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