Cost Depletion Basis Optimization
IRC §612
Establishes that the basis for depletion is the adjusted basis of the property, allowing taxpayers to recover their capital investment as resources are sold.
Eligibility
Available to taxpayers who have a cost basis in mineral or timber property and are calculating depletion based on units extracted.
Frequently Asked Questions
Who is eligible for the Cost Depletion Basis Optimization?
Available to taxpayers who have a cost basis in mineral or timber property and are calculating depletion based on units extracted.
How does the Cost Depletion Basis Optimization work?
Establishes that the basis for depletion is the adjusted basis of the property, allowing taxpayers to recover their capital investment as resources are sold.
What law authorizes the Cost Depletion Basis Optimization?
The Cost Depletion Basis Optimization is authorized under IRC §612 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §612
Source: Internal Revenue Code, Title 26, United States Code
Legal Sources
US Code (Official) — 26 USC §612 → Cornell Law Institute — 26 USC §612 → Search IRS.gov for IRC §612 → Treasury Regulations (26 CFR) →Discovered by: discovery_engine_v1
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