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Category: Where Do I Enter....In The Tax Program

Reporting Depletion

Depletion is the using up of natural resources by  mining, drilling, quarrying stone, or cutting timber. The depletion deduction allows an owner or operator to account for the reduction of a product's reserves.

There are two ways of figuring depletion: cost depletion and percentage depletion. For mineral property, you generally must use the method that gives you the larger deduction. For standing timber, you must use cost depletion.

Select the links below to show/hide additional information:

 To Report Depletion From a K-1
 To Report Depletion On Schedule C
 To Report Depletion On Form 6251

NOTE: This is a guide on entering depletion into the TaxSlayer Pro program.  This is not intended as tax advice.  For additional information refer to the Additional Links below.

Additional links:
Publication 535, Business Expenses
Publication 544, Sales and Other Dispositions of Assets
Publication 551, Basis of Assets

Last Updated: 10/24/2016

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