Depletion

[NotEasy]

There are two ways to claim depletion expenses of an intangible drilling activity:

(1) Cost Depletion Method
(2) Income percentage method (15% of the gross income generated by the intangible drilling activity)

My question is: If you choose the income percentage method this year, can you switch to the cost depletion method next year?

[Gene V]

There are two ways to claim depletion expenses of an intangible drilling activity:

(1) Cost Depletion Method
(2) Income percentage method (15% of the gross income generated by the intangible drilling activity)

My question is: If you choose the income percentage method this year, can you switch to the cost depletion method next year?

This is from West Federal Taxation 2008 Edition:


There are two methods of calculating depletion: cost and percentage.
Depletion should be calculated both ways, and generally, the method that results in the larger deduction is used. The choice between cost and percentage depletion is an annual election.

[NotEasy]

This is from West Federal Taxation 2008 Edition:


There are two methods of calculating depletion: cost and percentage.
Depletion should be calculated both ways, and generally, the method that results in the larger deduction is used. The choice between cost and percentage depletion is an annual election.

Thank you.