Stearns County, Minnesota | By the way, you do understand that a "depletion allowance" is not an exemption or deduction but a different animal completely. It is an "entitlement" with a different name. From the IRS web site, it is called a deduction. Who Can Claim Depletion?
If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. More than one person can have an economic interest in the same mineral deposit or timber. In the case of leased property, the depletion deduction is divided between the lessor and the lessee. You have an economic interest if both the following apply. You have acquired by investment any interest in mineral deposits or standing timber. You have a legal right to income from the extraction of the mineral or cutting of the timber to which you must look for a return of your capital investment. https://www.irs.gov/publications/p535/ch09.html
Edited by 99MAX 2/5/2016 22:26
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