Tax depletion
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[edit] Description
- Non-cash deductions from income for tax calculations
- Assuming that losses can be taken when incurred against other income
- Often used in feasibility studies together with depreciation
[edit] Types of depletion
- Percentage depletion
- Flat percentage of the income from the units sold is depleted
- Cost depletion
- Items required to calculate this specific type: adjusted property basis, number of recoverable units & number of units sold
[edit] See also
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