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LSDefine

Simple English definitions for legal terms

percentage depletion

Read a random definition: Ownership in common

A quick definition of percentage depletion:

Percentage depletion is a way for people who own a share in an oil or gas well to deduct a certain percentage of the money earned from the well instead of subtracting the actual cost of the well. This helps them save money on taxes. It's different from cost depletion, which subtracts the actual cost of the well over time.

A more thorough explanation:

Percentage depletion is a method used in the oil and gas industry that allows a taxpayer who owns an economic interest in a producing well to deduct a specified percentage of the gross income from the well instead of depleting the actual basis. This means that the taxpayer can deduct a certain percentage of the income earned from the well as a tax deduction.

For example, if a taxpayer owns an economic interest in a producing oil well and the well generates $100,000 in gross income, and the percentage depletion rate is 15%, the taxpayer can deduct $15,000 from their taxable income.

This method of depletion is different from cost depletion, which allows the taxpayer to deduct the actual cost of the well over time.

Percentage depletion is beneficial for taxpayers because it allows them to deduct a percentage of the income earned from the well, which can result in significant tax savings. However, it is important to note that there are limitations and restrictions on the use of percentage depletion, and taxpayers should consult with a tax professional to determine if they are eligible to use this method.

per capita tax | percentage game

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[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
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