If you are so inclined, to preserve the depletion allowance, call the Senate Finance Committee Members today and tomorrow.
Your call should be simple . . . “I understand the Finance Committee is preparing a draft on tax reform. As an oil and gas royalty owner I want to express my sincere desire that the Committee maintain percentage depletion as it currently exists just as the House Ways and Means Committee did.”
To the right is a list of Committee members to concentrate on.
If your Senator is not listed still make the call just say . . . “My Senators are not on the Finance Committee but I understand the Committee will make decisions that could have a dramatic effect on me and my family . . .” Then say the above statement on percentage depletion.
We have heard that the Finance Committee is considering a limit on percentage depletion of 20% of the adjusted cost basis. Determining a cost basis can be very difficult. This is one of the reasons Congress enacted percentage depletion.