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Percentage Depletion

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percentage depletion
Depletion calculated as a percentage of gross income derived from a natural resource. Percentage depletion is independent of the cost of the resource.

Percentage Depletion
The deduction for percentage depletion is a specified percentage of the gross income from the property, subject to other limits. Percentage depletion is allowed for nearly all natural resources, except timber. See also Cost Depletion.


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