Owner of an overriding royalty interest is entitled to depletion

Journal Article · Sun Sep 01 04:00:00 EDT 1985 · Oil Gas Tax Q.; (United States)

OSTI ID:5194698

Internal Revenue Service Private Letter Ruling 8508058 concludes that a taxpayer owning overriding royalty interests in oil and gas production is entitled to compute an allowance for depletion, using either the cost depletion or percentage depletion method. The basis for the finding was that the taxpayer had acquired a mineral interest and secured income that would be derived solely from the extraction of the mineral for a return of his capital. This gave the taxpayer an economic interest in the mineral under Regulations Section 1.611-1(b)(1).

• OSTI ID: 5194698
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 34:1; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
DEPLETION ALLOWANCES
GEOLOGIC DEPOSITS
INCOME
LAWS
LEASES
LEGAL ASPECTS
MINERAL RESOURCES
NATIONAL ORGANIZATIONS
OWNERSHIP
PETROLEUM DEPOSITS
RESOURCES
ROYALTIES
TAX LAWS
TAXES
US DEPARTMENT OF TREASURY
US IRS
US ORGANIZATIONS