Treasury Regulations · 26 CFR
§ 1.611-5. Depreciation of improvements.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 611
Cite as 26 CFR § 1.611-5
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- November 26, 1960 by T.D. 6500
- Last amended
- July 15, 1965 by T.D. 6836
- Issued under
- 26 U.S.C. § 611
- Length
- 353 words · about 2 min to read
- Cross-references
- cites 4 Code sections and 3 regulations; cited by 2
¶(a) In general. Section 611 provides in the case of mines, oil and gas wells, other natural deposits, and timber that there shall be allowed as a deduction a reasonable allowance for depreciation of improvements. Such allowance shall include exhaustion, wear and tear, and obsolescence. The deduction allowed under section 611 shall be determined under the provisions of section 167 and the regulations thereunder. For purposes of section 167 the unit of production method may, under appropriate circumstances, be considered a reasonable method under section 167(a), and therefore, not subject to the limitations prescribed by section 167(b).
¶(b) Special rules for mines, oil and gas wells, other natural deposits and timber.
¶(1) For principles governing the apportioning of depreciation allowances under sections 611 and 167 in the case of property held by one person for life with remainder to another or in the case of property held in trust or by an estate, see § 1.167(h)-1.
¶(2) A reasonable allowance for depreciation on account of obsolescence or decay shall be required in an appropriate case during periods when the improvement is not used in production or is used in producing at a rate below its normal capacity. This rule is applicable whether or not the taxpayer uses the unit of production method.
¶(4) In the case of operating oil or gas properties, the deduction for depreciation shall be allowed for those costs of improvements such as machinery, tools, equipment, pipes, and other similar items and the costs of installation which are not treated as a deductible expense under section 263(c). See § 1.612-4.
¶(c) Accounting and recordkeeping. See § 1.167(a)-7 for accounting and recordkeeping requirements for taxpayers claiming deductions under section 611 and this section.
[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 6712, 29 FR 3655, Mar. 24, 1964; T.D. 6836, 30 FR 8902, July 15, 1965]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 611 Allowance of deduction for depletion
- § 167 Depreciation
- § 615 Repealed
- § 263 Capital expenditures
Regulations it cites
- § 1.167(h)-1 Life tenants and beneficiaries of trusts and estates.
- § 1.612-4 Charges to capital and to expense in case of oil and gas wells.
- § 1.167(a)-7 Accounting for depreciable property.
Cited by 2 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 6836 (30 FR 8902)
- Amended by T.D. 6712 (29 FR 3655)
- Issued by T.D. 6500 (25 FR 11737)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Natural Resources
Nearby sections
- § 1.611-1 Allowance of deduction for depletion.
- § 1.611-2 Rules applicable to mines, oil and gas wells, and other natural deposits.
- § 1.611-3 Rules applicable to timber.
- § 1.611-4 Depletion as a factor in computing earnings and profits for dividend purposes.
- § 1.611-5 Depreciation of improvements.
- § 1.612-1 Basis for allowance of cost depletion.
- § 1.612-2 Allowable capital additions in case of mines.
- § 1.612-3 Depletion; treatment of bonus and advanced royalty.
- § 1.612-4 Charges to capital and to expense in case of oil and gas wells.