§ 611. Allowance of deduction for depletion
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(a)General rule In the case of mines, oil and gas wells, other natural deposits, and timber, there shall be allowed as a deduction in computing taxable income a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case; such reasonable allowance in all cases to be made under regulations prescribed by the Secretary. For purposes of this part, the term “mines” includes deposits of waste or residue, the extraction of ores or minerals from which is treated as mining under section 613(c). In any case in which it is ascertained as a result of operations or of development work that the recoverable units are greater or less than the prior estimate thereof, then such prior estimate (but not the basis for depletion) shall be revised and the allowance under this section for subsequent taxable years shall be based on such revised estimate.
(b)Special rules
(1)Leases In the case of a lease, the deduction under this section shall be equitably apportioned between the lessor and lessee.
(2)Life tenant and remainderman In the case of property held by one person for life with remainder to another person, the deduction under this section shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant.
(3)Property held in trust In the case of property held in trust, the deduction under this section shall be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each.
(4)Property held by estate In the case of an estate, the deduction under this section shall be apportioned between the estate and the heirs, legatees, and devisees on the basis of the income of the estate allocable to each.
(c)Cross reference For other rules applicable to depreciation of improvements, see section 167.
(Aug. 16, 1954, ch. 736, 68A Stat. 207; Pub. L. 85–866, title I, § 35, Sept. 2, 1958, 72 Stat. 1632; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
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statutes-at-large
- Public Law 86–69
- Public Law 86–564
- Public Law 91–169to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon,” approved March 4, 1907
- Public Law 85–866
- Public Law 427
- Public Law 94–12To amend the Internal Revenue Code of 1954 to provide for a refund of 1874 individual income taxes, to increase the low income allowance and the percentage standard deduction, to provide a credit for personal exemptions and a credit for certain earned income, to increase the investment credit and th
- Public Law 95–618To provide tax incentives for the production and conservation of energy, and for other purposes
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U.S. Code
9 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 207
- Pub. L. 85–866, title I, § 35
- 72 Stat. 1632
- Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
- 90 Stat. 1834
- Pub. L. 94–455
- Pub. L. 85–866
- section 1(c)(1) of Pub. L. 85–866
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§ 611
Allowance of deduction for depletion
Stat.×14
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 207
Pub. L.Pub. L. 85–866, title I, § 35
Stat.72 Stat. 1632
Pub. L.Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
Cites 10 · showing 6Cited by 14 across 1 source