
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC611]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                     Subchapter I--Natural Resources
 
                           PART I--DEDUCTIONS
 
Sec. 611. Allowance of deduction for depletion


(a) General rule

    In the case of mines, oil and gas wells, other natural deposits, and 
timber, there shall be allowed as a deduction in computing taxable 
income a reasonable allowance for depletion and for depreciation of 
improvements, according to the peculiar conditions in each case; such 
reasonable allowance in all cases to be made under regulations 
prescribed by the Secretary. For purposes of this part, the term 
``mines'' includes deposits of waste or residue, the extraction of ores 
or minerals from which is treated as mining under section 613(c). In any 
case in which it is ascertained as a result of operations or of 
development work that the recoverable units are greater or less than the 
prior estimate thereof, then such prior estimate (but not the basis for 
depletion) shall be revised and the allowance under this section for 
subsequent taxable years shall be based on such revised estimate.

(b) Special rules

                             (1) Leases

        In the case of a lease, the deduction under this section shall 
    be equitably apportioned between the lessor and lessee.

                  (2) Life tenant and remainderman

        In the case of property held by one person for life with 
    remainder to another person, the deduction under this section shall 
    be computed as if the life tenant were the absolute owner of the 
    property and shall be allowed to the life tenant.

                     (3) Property held in trust

        In the case of property held in trust, the deduction under this 
    section shall be apportioned between the income beneficiaries and 
    the trustee in accordance with the pertinent provisions of the 
    instrument creating the trust, or, in the absence of such 
    provisions, on the basis of the trust income allocable to each.

                     (4) Property held by estate

        In the case of an estate, the deduction under this section shall 
    be apportioned between the estate and the heirs, legatees, and 
    devisees on the basis of the income of the estate allocable to each.

(c) Cross reference

            For other rules applicable to depreciation of improvements, 
        see section 167.

(Aug. 16, 1954, ch. 736, 68A Stat. 207; Pub. L. 85-866, title I, 
Sec. 35, Sept. 2, 1958, 72 Stat. 1632; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)


                               Amendments

    1976--Subsec. (a). Pub. L. 94-455 struck out ``or his delegate'' 
after ``Secretary''.
    1958--Subsec. (d)(4). Pub. L. 85-866 substituted ``devisees'' for 
``devises''.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-866 applicable to taxable years beginning 
after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) 
of Pub. L. 85-866, set out as a note under section 165 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 56, 57, 62, 167, 174, 263, 
291, 613, 613A, 616, 617, 642, 691, 703, 776, 834, 901, 1082, 1254, 
4940, 7704 of this title.
