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| Fletch, thanks for your post!
I said depletion is the same "type" of deduction as depreciation versus say, fertilizer or chemicals. In other words it is not all deducted tha same year as purchased. I have been a tax preparer for 27 years, I know how taxes work.
Your explanation on cost depletion and percentage depletion is right on. So my point about depletion is, there is no subsidy there. I guess you could argue maybe a small subsidy on the percentage depletion method because it could allow a total deduction of more than original capital investment. But that is miniscule in my opinion. You see buying an oil field is not like buying farmland. Farmland for the most part does not depreciate. Where as the oil in the ground for the most part eventually is used up and gone and that value is gone just like machinery over many years will lose its value, except there is a salvage value of course. So depletion is not a subsidy and 1234 continues to be deceptive on that point!
1234 also talks about money transfers. I would like for him to educate me on what those are!
Can't argue about the military spending. But I will say, grain farming has had plenty of money transfers too!
I just disagree with the perception of "greedy oil companies" that people like 1234 seem to spread!
Jfi, I farm 1500 acres of corn/soybeans and raise 9600 wean to finish hogs per year. | |
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E & E continued.
