... and the deduction for intangible drilling and development cost. We hear a lot about the depletion "loophole". The term "loophole" is generally understood to mean an ambiguity or omission in the text of a statute that permits the intent of the law to be circumvented. The fact is that percentage depletion has been...

... was not taxable on the proceeds of the sale of production accruing to the payment. As to B, the Service ruled that he had acquired an economic interest in the properties from A, that he was taxable on the proceeds of the sale of production accruing to the payment and that he could deduct from such proceeds...

.... In an extractive industry such as ours, statutory depletion is an important element in this computation, as are the depreciation deduction and method of financing also. These computations are ordinarily done by accountants versed in income taxes. This paper is presented to explain how accountants and petroleum...

... internal revenue code purchase price assignment payment internal revenue service deduction third party development payment asset and portfolio management purchaser consideration capital gain treatment acquisition Upstream Oil & Gas depletion operation production payment transaction...