In the case of production after 1974 and to which gross income from the property is attributable for the calendar year: | The tentative quantity in barrels per day is: |
1975 | 2,000 |
1976 | 1,800 |
1977 | 1,600 |
1978 | 1,400 |
1979 | 1,200 |
1980 and thereafter | 1,000 |
In the case of production after 1974 and to which gross income from the property is attributable for the calendar year: | The applicable percentage is: |
1975 | 22 |
1976 | 22 |
1977 | 22 |
1978 | 22 |
1979 | 22 |
1980 | 22 |
1981 | 20 |
1982 | 18 |
1983 | 16 |
1984 and thereafter | 15 |
$25x to the 1975 oil:
and $50x to the 1976 oil:
With the application of the 50 percent of taxable income from the property limitation, the allowable percentage depletion (computed without reference to section 613A) is limited to $12.50x for the gas, $12.50x for the oil in 1975, and $25x for the oil in 1976.
If the requirements of paragraph (e)(2)(ii) (A) and (B) of this section are met, a partner's proportionate share is determined in accordance with his or her proportionate interest in partnership income. The partners' shares of adjusted basis are determined on a property-by-property basis. Accordingly, the basis of one property may be allocated in proportion to capital and the basis of another property may be allocated in proportion to income. See §§ 1.613A-3(e)(5) and 1.704-1(b)(4)(v) for special rules concerning allocation of the adjusted basis of oil and gas properties.
Pursuant to § 1.611-1(c)(4)(ii) , the percentage depletion of $4,400x was apportioned between the trustee and A so that the trustee received $3,000x (an amount equal to the amount of income set aside for the reserve for depletion) and A received $1,400x of the depletion deduction. The $1,400x depletion received by A is attributable to 80 percent of the trust's depletable oil quantity, i.e., 1,600 barrels per day.
and Corporation N's allocable share is 400 barrels:
With respect to M's primary production, M's depletable oil quantity is 600 barrels (1,600 barrels - 1,000 barrels [365,000 secondary production ÷ 365 days]). N's depletable oil quantity, unaffected by M's secondary production, is 400 barrels.
Corporation O's allowable depletion pursuant to section 613A (c) with respect to property B's secondary production (for which depletion is allowable before primary production) for 1975 was $360x. Corporation O's allowable depletion pursuant to section 613A (c) with respect to property A was $200x:
Therefore, Corporation O's allowable depletion pursuant to section 613A (c) was $560x ($360x relating to property B plus $200x relating to property A). Corporation P's allowable depletion pursuant to section 613A (c) with respect to property C was $165x:
26 C.F.R. §1.613A-3