Percentage depletion

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A tax deduction that a miner, driller, or other producer of a non-renewable natural resource may take. It is calculated as a set percentage, which differs depending on the material, by which one may reduce one's gross income for tax purposes. For example, an oil driller in the United States may take a 15% tax deduction from his/her gross income on all income derived from the drilling of oil. Percentage depletion exists in order to encourage the exploration for and use of natural resources within the United States.

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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Cost Depletion depletion			Although there are two available methods of depletion, cost depletion and percentage depletion, generally oil and gas operations may use only the cost depletion method (Regs. Tax consequences of the rush for natural gas in the Appalachians by Russo, Charles J.; Staley, A. Blair / The Tax Adviser 100% net income limitation for percentage depletion from marginal wells was suspended for an additional two years to include taxable years beginning in 2002 and 2003. An overview of federal taxation enacted in 2002. (New York Liberty ... by Chakarun, Michael / The National Public Accountant Excess of percentage depletion over the adjusted basis of the property is deductible. The AMT trap by Kern, Beth B. / Journal of Accountancy			Pension/Annuity Starting Date Pensioner Pensionistico Pensions penthouse Penultimate Profit Prospect Peon People Pill People's Bank of China PEPS Pequeno inversor PER per annum per capita Per Capita Debt Per Capita Income per diem charge Per Diem Interest per door Per Mille Per Se Per Share Basis per stirpes PERC Percent to Double Percentage depletion Percentage Financial Statement percentage lease percentage of debt percentage of equity Percentage Order Percentage Premium Percentage Price Oscillator Percentage-of-Completion Method percolation test Perda de eficiencia Perdao da divida Perdedor Perdida de capital Perdida de eficiencia Perdida extraordinaria Perdida neta Perdida operativa Perdida realizada Perdida trasladable a ejercicios anteriores Perdida trasladable a ejercicios posteriores Perdita di capitale Perdite accidentali Perestroika perfect Perfect Capital Market			Percent Retail Product Percent return Percent return Percent return percent saturation percent sign percent sign percent solution percent systole Percent Time Off Cardioplegia Percent Time Operable Percent Time-Spent-Following Percent to double Percent to Quota percent voids Percent within Limits Percent/age percentage percentage percentage Percentage above Canopy Light Percentage Absolute Prediction Error Percentage Accepted Mutation Percentage agreement Percentage By-Weight Acrylate Percentage Change, Year Ago percentage clearance percentage compensation Percentage Correctly Classified Percentage depletion percentage depth dose percentage depth dose percentage depth dose percentage depth dose percentage depth dose percentage differential relay percentage distribution Percentage Effort Ratio percentage equity percentage equity percentage equity percentage equity percentage equity Percentage Error Second Percentage Exit Thickness Dose percentage extraction percentage fee Percentage financial statement Percentage Financial Statements Percentage for Art percentage humidity Percentage Increment Point Percentage Lease Percentage Lease percentage log percentage map Percentage Maximal Relaxation percentage modulation Percentage of Absolute Cerebral Metabolic Reduction Percentage of Base

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