How does depletion affect my taxes?

Answer by  Taxmatters (169)

Are you referring to depletion, such as oil and gas wells, or is your concern the depreciation of business equipment? If you are involved with oil and gas properties, you will likely need the advice of a tax professional, Enrolled Agent, CPA or tax attorney, to assist with your return.

Answer by  salsafoodie (3146)

Depending on the amount of your assets it could deplete if the items is lower during the years due to a less demand before it was purchased. One way to find the depletion value of your item it to get your item appraised in order to find the correct value for your item.

Answer by  Att4372 (1704)

Depletion is tax expense for natural assets that get used up. Unless receive income from mineral deposits (oil, mining), depletion should have no effect on your tax bill.