Thank you for your response, Dusty.
It would be nice to hear a tax professional’s opinion on this.
I’d also like to understand if we can take anything higher than a 15% depletion deduction.
For example, I own a small percentage of mineral rights to a property in northwest Louisiana that’s producing natural gas. Publication 535 indicates that if your average daily production exceeds your depletable gas quantity, then you can provide a separate calculation of depletion percentage.