Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

Deletion Rate

Level 1

I have a client who has sold huge amounts of water to the oil & gas industry for fracking operations.  He got the water sales on a 1099-MISC as royalties - is there a depletion rate - like oil & gas is 15%  - is there on for water??

Labels (1)
0 Cheers
3 Replies 3
Level 8
Level 8

@taxiowa  may be able to help

Level 12

@PhoebeRobertsmight be able to help.

"Level Up" is a gaming function, not a real life function.

The statutory (percentage) depletion rate for water is zero.


"(4) For purposes of this section, the term all other minerals does not include (i) soil, sod, dirt, turf, water, or mosses"


Water is considered an inexhaustible resource, not a depleting one.