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?
(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?
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