The Tax Code provides a special section applicable to farmers or those conducting a farming business. One part of that section pertains to the use of depletion.
Following is an overview of depletion.
What is Depletion?
Depletion is the use of natural resources through the activities of cutting, drilling, mining, or quarrying. Through the use of depletion, the owner of the natural resource can determine the amount of the resource’s value that has been used and the amount that remains.