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What Are Depletions?

By Motley Fool StaffUpdated Sep 5, 2025 at 12:10 PM

Key Points

  • Depletion allows for value reduction of extracted natural resources on financial statements.
  • Investors can use cost or percentage depletion methods to calculate deductions.
  • Percentage depletion caps deductions to the lesser of 100% of property income or 65% of total income.

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