No, that's not right. In the case of oil and gas resources, the allowance for depletion may be computed on a cost or percentage depletion basis, whichever results in a greater allowance for depletion for the tax year.
Percentage depletion allows the deduction of a statutory percentage of gross income from property, and bears no relationship to cost or other basis.
In fact, an allowance calculated under percentage depletion is deductible even when the taxpayer's adjusted basis in the property is zero, provided that the taxpayer has gross income from the property.
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