Percentage depletion claimed in excess of the adjusted bases of property can be a tax preference item.

Name: Percentage depletion claimed in excess of the adjusted bases of property can be a tax preference item.
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Quizplus · Accepted Answer

This is true according to the IRS Code Section 57(a)(5). When percentage depletion claimed in excess of the adjusted basis of property, it is considered a tax preference item and can potentially result in alternative minimum tax liability.

Percentage Depletion Claimed in Excess of the Adjusted Bases of Property