Depletion Allowance

[user17715609875]

What backup paperwork does the IRS require in order to take the depletion allowance on oil royalties? I've read that 15% is the standard amount for oil--is there someplace on the IRS website that verifies that percentage?

[RobertB4444]

There is no required backup paperwork in order to take depletion on oil royalties.  Using the percentage depletion method oil royalties automatically take a 15% deduction.  Here is the IRS guidance on depletion.

[user17715609875]

Thank you.