Computing percentage depletion under the independent-producer and royalty-owner exemption

Journal Article · Mon Dec 01 04:00:00 EST 1980 · Oil Gas Tax Q.; (United States)

OSTI ID:6700103

Finkel, I G

The calculation for determining percentage depletion is simple for the taxpayer who owns one royalty interest paying less than $250,000 a year and having substantial other income. The sophisticated investor in oil and gas ventures and the oil and gas developer who receives an economic interest in exchange for exploration and development are frustrated, however, by tedious calculations resulting from the way the Internal Revenue Code (IRC) is worded. The calculations necessary to determine percentage depletion are made using a hypothetical problem to pinpoint the areas where the IRC fails to guide the taxpayer and to note any opportunities for increasing depletion deductions. 50 references, 4 tables.

• Research Organization: DeMuth, Kemp and Backus, Denver, CO
• OSTI ID: 6700103
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 24:2; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
ACCOUNTING
CALCULATION METHODS
DEPLETION ALLOWANCES
FINANCIAL INCENTIVES
INDUSTRY
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY