Percentage depletion enables the taxpayer to recover more than the cost of an asset in the form of tax deductions.

Name: Percentage depletion enables the taxpayer to recover more than the cost of an asset in the form of tax deductions.
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Percentage depletion allows a taxpayer to deduct a percentage of the gross income derived from the sale of natural resources. This deduction can exceed the cost of the asset, therefore enabling the taxpayer to recover more than its cost.

Percentage Depletion Enables the Taxpayer to Recover More Than the Cost