► Is the IRS Depletion tax allowance fairly applied? Print E-mail

Is the IRS Depletion tax allowance fairly applied?

 
The IRS allows you to claim a depletion allowance if you have an economic interest in standing timber or any mineral deposit. (IRS Publication 535) In other words, you can take a deduction for depletion of your interest in any standing timber, etc.
 
However, the IRS provides no tax relief for a wife whose standing timber is depleted (kaput) and is no longer able to provide the services previously contracted for.
 
It certainly would be absurd to argue that a wife does not have an economic interest in her standing timber (past tense), right? In fact the IRS states that you have an economic interest if both the following apply:
 
You acquired by investment [invested 25-45 years of your life, right) in standing timber
You have a legal right to income from the cutting of the timber [Ouch!] which you must look for a return of your capitol investment [You Gals made the initial investment and expected a return on it, right?]
 
Does this unequal application of the depletion allowance seem fair to you Gals? Talk about gender bias!
 
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