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Depletion: Who can claim
Economic interest
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Who Can
Claim Depletion
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| 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. |
| 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.
A contractual relationship that allows you an economic or monetary advantage from products of the mineral deposit or standing timber is not, in itself, an economic interest. A production payment carved out of, or retained on the sale of, mineral property is not an economic interest. |
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Previous Page: 535-Depletion
Next Page: 535-Depletion-Mineral Property
Use to find additional instances of index items. |
Master Index | List of Publications | List of Acronyms
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