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Discussion:Groundwater Depletion Deduction

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Discussion Forum Index --> Tax Questions --> Groundwater Depletion Deduction


JoeDubya (talk|edits) said:

9 January 2007
IRS pub 225 (Farm Tax Guide) chapt 8 depreciation, depletion: mentions the depletion deduction for groundwater in the Ogallala formation (aquifer). A} where can i read IRS cumulative bulletin 1966-1 for the computation ? Have tried searching IRS website with no results ? B) From what i have learned, explanations and computations are based on properties over the Ogallala aquifer that are irrigated row-crop operations. Am i correct that, IN PRINCIPLE, this depletion applies to cattle operations ? C) if so, how to compute the depletion deduction ? D) My property is over the Ogallala formation and the cattle drink well-water. If the land value basis is $218,000 what percentage of that is the water value as required by the IRS computation ?

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