Title 26 — Internal Revenue Code
Part I · Chapter 1 — Normal Taxes and Surtaxes
§ 611. Allowance of deduction for depletion
Statutory text
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.
Special rules
Leases
In the case of a lease, the deduction under this section shall be equitably apportioned between the lessor and lessee.
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.
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.
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.
Cross reference
For other rules applicable to depreciation of improvements, see section 167.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 207 · 68A Stat. 207
Enacted · 26 U.S.C. § 611
Aug. 16, 1954, ch. 736, 68A Stat. 207
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 207Technical Amendments Act of 1958
Pub. L. 85–866 title I § 35 · 72 Stat. 1606
Substituted · 26 U.S.C. § 611(d)(4)
Pub. L. 85–866 substituted “devisees” for “devises”
Source evidence
Code amendment note
Subsec. (d)(4). Pub. L. 85–866 substituted “devisees” for “devises”.Enacted provision · exact public law section
SEC. 35. DEPLETION ALLOWANCE IN CASE OF ESTATES. 26 USC 611. Section 611 (b) (4) (relating to allowance of deduction for depletion in the case of estates) is amended by striking out “devises” and inserting in lieu thereof “devisees”.Effective date note
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.Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 611(a)
Pub. L. 94–455 struck out “or his delegate” after “Secretary”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.
2 of 3 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1958–1976 · 2 rounds
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”.
Statutory Notes and Related Subsidiaries
Effective Date of 1958 Amendment
Amendment by Pub. L. 85–866 applicable to taxable years beginning after , and ending after , see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.
Credits
1954–1976 · 3 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 207
- 1958Pub. L. 85–866, title I, § 35, , 72 Stat. 1632
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 207; Pub. L. 85–866, title I, § 35, , 72 Stat. 1632; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834.)