Question

Percentage depletion

Forum|Forum|1 year ago
March 7, 2025
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Which states do not allow percentage depletion in excess of cost basis?

The following three states don't allow or limit percentage depletion in excess of cost basis.

California: Requires taxpayers to use cost depletion, which is limited to the adjusted basis of the property. Learn more
New York: Allows taxpayers to use cost depletion with one important provision of percentage depletion is that in no event may the deduction exceed 50 percent of the taxable income from the property. Learn more
Pennsylvania: Requires taxpayers to use cost depletion, which is limited to the adjusted basis of the property. Learn more

Other states my have restrictions also. If you need more information on how to apply these rules in your tax return, provide additional details and reach back out.