(1) In the case of mines, other natural deposits, oil and gas wells, and timber, a reasonable allowance for depletion may be claimed. With the exception of property with respect to which an election to claim percentage depletion has been exercised, the capital sum recoverable through depletion allowances is the adjusted basis for determining gain on a sale or other disposition as specified in ARM 42.23.212.

(2) The allowance for depletion shall be determined according to the provisions of the IRC relating to the reporting period.

History: Sec. 15-31-501, MCA; IMP, Sec. 15-31-114, MCA; Eff. 12/31/72; AMD, 2001 MAR p. 2046, Eff. 10/12/01.