Manual for the Oil and Gas Industry Under the Revenue Act of 1918 |
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Common terms and phrases
30 days Actual cash value anticline average decline Average Estimated production average future Average average future production Average production Estimated Barrels Bartlesville Baumé capital sum returnable cash value cent closed-pressure computing cost or value COUNTY curves and tables date of acquisition date of appraisal decline curve depletion allowance depletion and depreciation depletion deductions depreciation reserve Devonian district drilling duction equipment Estimated average future Estimated future production Estimated production recoverable Estimated recoverable fair market value feet future Average production future during tax future production curve future production table gas properties gross income ground reserve Healdton invested capital Lawrence County March method name and address natural gas number of units oil and gas oil or gas physical property plant pool pounds production Average production production Estimated average production records proven refinery Regulations 45 returnable through depletion sand specific gravity taxable taxpayer thickness tion township valuation zone
Popular passages
Page 16 - The necessity for a depreciation allowance arises from the fact that certain property used in the business gradually approaches a point where its usefulness is exhausted. The allowance should be confined to property of this nature. In the case of tangible property, it applies to that which is subject to wear and tear, to decay or decline from natural causes, to exhaustion, and to obsolescence...
Page 23 - That in the case of mines, oil and gas wells, discovered by the taxpayer, on or after March 1, 1913, and not acquired as the result of purchase of a proven tract or lease...
Page 16 - In the case of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each case...
Page 24 - ... with reference to the condition of the property as it existed at that date, regardless of all subsequent changes such as changes in surrounding circumstances, in methods of exploitation, in degree of utilization, etc. The value sought should be that established assuming a transfer between a willing seller and a willing buyer as of that particular date.
Page 14 - The cost of incidental repairs which neither materially add to the value of the property nor appreciably prolong its life...
Page 17 - In the case of the acquisition on or after March 1, 1913, of a combination of depreciable and nondepreciable property for a lump price, as, for example, buildings and land, the...
Page 14 - ... deducted from gross income, he may render an amended return for such preceding taxable year including such amount of loss in the deductions from gross income and may file a claim for refund of the excess tax paid by reason of the failure to deduct such loss in the original return.
Page 35 - These accounts shall be credited with the amount of the depreciation and depletion deductions claimed and allowed each year, or the amount of the depreciation and depletion shall be credited to depletion and depreciation reserve accounts, to the end that when the sum of the credits for depletion and depreciation equals the value or cost of the property, plus the amount added thereto for development or additional plant and equipment, less salvage value of the physical proper27 ia.
Page 20 - Section 23 (m) provides that there shall be allowed as a deduction in computing net income in the case of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion and for depreciation of improvements.
Page 17 - The capital sum to be replaced by depreciation allowances is the cost or other basis of the property in respect of which the allowance is made.