Internal Revenue Code · 26 U.S.C.
§ 611. Allowance of deduction for depletion
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 611
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- September 2, 1958 by Pub. L. 85–866
- Last amended
- October 4, 1976 by Pub. L. 94–455
- Amendments
- 1 dated changes in the source credit
- Length
- 3 subsections · 368 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 2; cited by 21 Code sections and 45 other regulations
- Regulations
- 6 issued under this section
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.
In the case of a lease, the deduction under this section shall be equitably apportioned between the lessor and lessee.
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.
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.
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.
(Aug. 16, 1954, ch. 736, 68A Stat. 207; Pub. L. 85–866, title I, § 35, Sept. 2, 1958, 72 Stat. 1632; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 611
- § 1.611-0 Regulatory authority.
- § 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.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
Cited by 21 Code sections
- § 57(a)(1) Items of tax preference
- § 62(a)(4) Adjusted gross income defined
- § 167(i)(1) Depreciation
- § 174(c)(1) Amortization of research and experimental expenditures
- § 174A(c)(1) Domestic research or experimental expenditures
- § 263(i)(2)(A) Capital expenditures
- § 291(b)(5) Special rules relating to corporate preference items
- § 415(b)(2)(F) Limitations on benefits and contribution under qualified plans
- § 613(a) Percentage depletion
- § 613A(a) Limitations on percentage depletion in case of oil and gas wells
- § 616(c) Development expenditures
- § 617(b)(1)(B) Deduction and recapture of certain mining exploration expenditures
- § 642(e) Special rules for credits and deductions
- § 691(b)(2) Recipients of income in respect of decedents
- § 703(a)(2)(F) Partnership computations
- § 832(c)(8) Insurance company taxable income
- § 834(c)(9) Determination of taxable investment income
- § 901(f)(1) Taxes of foreign countries and of possessions of United States
- § 1254(a)(1)(A)(ii) Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
- § 4940(c)(3)(B)(ii) Excise tax based on investment income
- § 7704(d)(1)(G) Certain publicly traded partnerships treated as corporations
Cited in 45 regulations not issued under it
- § 1.46-4 Limitations with respect to certain persons.
- § 1.57-1 Items of tax preference defined.
- § 1.57-4 Limitation on amounts treated as items of tax preference for taxable years beginning before January 1, 1976.
- § 1.58-2 General rules for conduit entities; partnerships and partners.
- § 1.61-8 Rents and royalties.
- § 1.62-1T Adjusted gross income (temporary).
- § 1.162-12 Expenses of farmers.
- § 1.163(j)-1 Definitions.
- § 1.167(i)-1 Depreciation of improvements in the case of mines, etc.
- § 1.174-2 Definition of research and experimental expenditures.
- § 1.362-2 Certain contributions to capital.
- § 1.381(c)(18)-1 Depletion on extraction of ores or minerals from the waste or residue of prior mining.
- § 1.612-1 Basis for allowance of cost depletion.
- § 1.613-1 Percentage depletion; general rule.
- § 1.613-2 Percentage depletion rates.
- § 1.613A-1 Post-1974 limitations on percentage depletion in case of oil and gas wells; general rule.
- § 1.613A-2 Exemption for certain domestic gas wells.
- § 1.613A-3 Exemption for independent producers and royalty owners.
- § 1.613A-4 Limitations on application of § 1.613A-3 exemption.
- § 1.613A-7 Definitions.
- § 1.617-3 Recapture of exploration expenditures.
- § 1.631-1 Election to consider cutting as sale or exchange.
- § 1.631-2 Gain or loss upon the disposal of timber under cutting contract.
- § 1.631-3 Gain or loss upon the disposal of coal or domestic iron ore with a retained economic interest.
Show 21 more
- § 1.636-4 Effective dates of section 636.
- § 1.638-1 Continental Shelf areas.
- § 1.703-1 Partnership computations.
- § 1.704-1 Partner's distributive share.
- § 1.705-1 Determination of basis of partner's interest.
- § 1.804-4 Investment yield of a life insurance company.
- § 1.901-2 Income, war profits, or excess profits tax paid or accrued.
- § 1.901-2A Dual capacity taxpayers.
- § 1.901-3 Reduction in amount of foreign taxes on foreign mineral income allowed as a credit.
- § 1.995-5 Foreign investment attributable to producer's loans.
- § 1.1014-6 Special rule for adjustments to basis where property is acquired from a decedent prior to his death.
- § 1.1245-2 Definition of recomputed basis.
- § 1.1254-1 Treatment of gain from disposition of natural resource recapture property.
- § 1.1254-4 Special rules for S corporations and their shareholders.
- § 1.1254-5 Special rules for partnerships and their partners.
- § 1.7704-4 Qualifying income—mineral and natural resources.
- § 1.9003-1 Election to have the provisions of section 613(c) (2) and (4) of the 1954 Code, as amended, apply for past years.
- § 3.2 Ceiling on deposits.
- § 15.1-3 Elections as to method of recapture.
- § 301.9100-7T Time and manner of making certain elections under the Tax Reform Act of 1986.
- § 601.105 Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 94–455Parts changed in 1976: (a)
- Enacted by Pub. L. 85–866Parts changed in 1958: (d)(4)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter I Natural Resources
- Part I DEDUCTIONS
Nearby sections
- § 611 Allowance of deduction for depletion
- § 612 Basis for cost depletion
- § 613 Percentage depletion
- § 613A Limitations on percentage depletion in case of oil and gas wells
- § 614 Definition of property
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
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”.
Statutory Notes and Related Subsidiaries
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.