Depletion in United States

Practical Information

Note: Some of this information was last updated in 1982

An exhaustion or gradual reduction of an asset. Depletion in the federal income tax law applies to the exhaustion of assets such as oil, gas, timber, mineral deposits, and other nature resources. To compensate for the wasting away of the taxpayer’s assets, an annual depletion deduction is allowed when computing income (in U.S. law) for the federal income tax (in U.S. law). See also depreciation (in U.S. law).

(Revised by Ann De Vries)

What is Depletion?

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