Percentage Depletion deduction taken away!
Wasn't Senator Baucus one of those who lead the charge (and the drafting of) Obamacare? Don't feel like he's playing with a full deck.
Since I didn't mention the "full deck" issue when I called, could you mention it when you call?
I made no mention of it in my email to him. I don't want to end up on some NSA list.
Yes, you typically pay taxes on 85% of the royalty paid due to "depletion".
Are you sure that the bill proposes to both eliminate the 15% depletion and raise taxes by 15% or is he proposing to eliminate the 15% depletion thereby increasing taxes to royalty owners by 15%?
Obamacare already increases taxes on Royalties. See my recent post on this topic. People are having to pay a lot of money for this garbage legislation. I warned that it won't stop there. They just keep coming for more and more. Baucus is just the next thief disguised as a legislature to come along with a another fleecing program for you. Remember. every time they say they've done something for you, they have instead done something to you.
"If the well stops producing in "paying quantities" before then, can I accelerate the depreciation schedule?"
I believe you can retroactively accelerate the depreciation, but if there are any CPAs out there I'd love to hear a more detailed summation.
Angela, I think your latter analysis is correct. I meant to mention the potential
loss of the IDC deduction but was distracted by a couple of phone calls during