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Simple English definitions for legal terms

percentage depletion

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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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13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
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