Treasury Regulations · 26 CFR
§ 1.612-2. Allowable capital additions in case of mines.
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. § 612
Cite as 26 CFR § 1.612-2
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted.
- Issued under
- 26 U.S.C. § 612
- Length
- 166 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 1
¶(a) In general. Expenditures for improvements and for replacements, not including expenditures for ordinary and necessary maintenance and repairs, shall ordinarily be charged to capital account recoverable through depreciation deductions. Expenditures for equipment (including its installation and housing) and for replacements thereof, which are necessary to maintain the normal output solely because of the recession of the working faces of the mine and which:
¶(1) Do not increase the value of the mine, or
¶(2) Do not decrease the cost of production of mineral units, or
¶(3) Do not represent an amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made shall be deducted as ordinary and necessary business expenses.
¶(b) Special rule. For special provisions applicable to treatment of expenditures for certain exploration and development costs (other than for the acquisition, restoration, or betterment of improvements) with respect to minerals other than oil or gas, see sections 615 and 616 and the regulations thereunder.
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Cited by 1 other regulation
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Natural Resources
Nearby sections
- § 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.
- § 1.612-5 Charges to capital and to expense in case of geothermal wells.
- § 1.613-1 Percentage depletion; general rule.