That's what I was talking about, and seemingly a gift to extractors unless the lands in question are farther from roads and harder to access than the typical private oil and gas lease sites.
Percentage depletion, almost always 15% of revenue, is just a way of simplifying depletion (think depreciation) of the land rights you own outright, not a subsidy to anybody. Example: I lease my land for $20/acre plus 25% of what they get. When I do my taxes, I deduct 15% of my 25% for depletion (3.75% of actual oil sold), deduct my interest and property taxes, and pay income tax on what's left. Mitch. > On January 2, 2019 at 10:32 AM Andrew Strasfogel via Mercedes > <mercedes@okiebenz.com> wrote: > > > Federal oil and gas leases carry a 12.5% royalty plus a modest per acre > rental charge, which is below market _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
