# Oklahoma Income Tax Lease bonus depletion
**URL:** https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134
**Category:** General Mineral Rights Discussion
**Created:** [February 24, 2019, 6:25pm UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134 "2019-02-24T18:25:53Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@Eatherton](https://www.mineralrightsforum.com/u/Eatherton)
#### Post date: [February 24, 2019, 6:25pm UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134/1 "2019-02-24T18:25:53Z")
How are lease bonuses treated under Oklahoma Income Tax? Are they subject to depletion allowance? If so, what is the rate?
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### Author:  [@Rick5](https://www.mineralrightsforum.com/u/Rick5)
#### Post date: [February 24, 2019, 9:01pm UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134/2 "2019-02-24T21:01:48Z")
Our CPA treats lease bonuses as ordinary income with the IRS/State. No depletion allowance.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [February 24, 2019, 9:43pm UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134/3 "2019-02-24T21:43:19Z")
Oklahoma has allowed 22% depletion on both royalty and lease bonus. I do not know if that has recently changed. You should be able to find income tax information on the Oklahoma website.
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### Author:  [@Rick5](https://www.mineralrightsforum.com/u/Rick5)
#### Post date: [February 27, 2019, 12:45am UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134/4 "2019-02-27T00:45:21Z")
Looks like you’re right Tennis Daze.
From the Oklahoma Tax Commission website:
“Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. Major oil companies, as defined in Title 52 OS Sec. 288.2, when computing Oklahoma depletion, shall be limited to 50% of the net income (computed without the allowance for depletion) from each property. If Oklahoma options are exercised, the federal depletion not used due to 65% limit may not be carried over. Lease bonus received is considered income subject to depletion. If depletion is claimed on a lease bonus and no income is received as a result of non-producing properties, upon expiration of the lease, such depletion must be restored. A complete schedule by property must be furnished.”
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:19pm UTC](https://www.mineralrightsforum.com/t/oklahoma-income-tax-lease-bonus-depletion/42134/5 "2025-01-11T19:19:29Z")