Percentage Depletion Modifications

Topics:
Petroleum and Gas
Tags:
Finance,
Financial Planning,
Net Income,
Percentage Depletion,
Taxes
Source:
Independent Petroleum Association of America

FREE Registration is required

Overview: Current tax law limits the use of percentage depletion of oil and gas in several ways. First, the percentage depletion allowance may only be taken by independent producers and royalty owners and not by integrated oil companies. Second, depletion may only be claimed up to specific daily production levels of 1,000 barrels of oil or 6,000 mcf of natural gas. Third, the deduction is limited to 65% of net taxable income. Fourth, the net income limitation requires percentage depletion to be calculated on a property-by-property basis. It prohibits percentage depletion to the extent it exceeds the net income from a particular property. These limitations apply both for regular and alternative minimum tax purposes.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 79KB | Date: Feb 2005 | Pages: 1

People who downloaded this item also downloaded

White Paper Crude Realities: The Era Of Cheap Energy Is Over
White Paper 2009 Industry Outlook: Energy & Resources
White Paper Eliminate the Net Income Limitation on Percentage Depletion
White Paper FASB Sees Derivatives As Liabilities

Top results from Petroleum and Gas

White Paper Natural Gas: A Growing Component of the MENA Energy Pie
White Paper Using Horizontal Gravel Packing Technology to Optimize Well Productivity and Field Economics: Case history, Uracoa Field Venezuela
White Paper Successful Horizontal Drilling and Gravel Packing in Deep and Ultra Deepwater
Case Study Density Analysis from Seismic Velocity Field Using Forward Modeling, A Case Study from Black Sea
Case Study Producing Cleaner Refineries in the USA

» View all Petroleum and Gas listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).