15% Percentage depletion impact on basis for gain or loss calculation

Taking depletion does not change your basis.

You cannot reduce your basis in the mineral property below zero. Because percentage depletion is based on income, it is not subject to recapture, even if it exceeds your tax basis in the mineral property.

I'm not sure we have the facts to answer your question:

• What basis are you referring to?
  • Your tax basis in the interest, or
  • Your basis in the underlying assets?
  • A few more facts would be helpful
• The percentage depletion mechanics can get very complicated.  How are you getting the information to determine the smaller of 100% of the taxable income from the property without regard to the depletion deduction or 65% taxable income limit?
• Where are you getting the information related to the gross income to determine the 15% before any limitation?
• What information are you getting in order to arrive your share of the adjusted basis of the property to calculate the depletion deduction; essentially the information to determine bullet number 2.
• This is a tax expense at the individual level (not an entity level expense) without really have an actual expense.
• Unlike cost depletion, percentage depletion is not limited to the depletable base of the property and can be deducted as long as the property generates income.