Question

In general, percentage depletion is limited to _____ percent of the taxable income from the property before the percentage depletion deduction.

Answer 1

Percentage depletion is a tax deduction for businesses extracting natural resources, but it is limited to 100% of the taxable income from the property.

Step-by-step explanation:

Percentage depletion is a tax deduction available to businesses involved in extracting natural resources. It allows them to deduct a certain percentage from their taxable income as a means of compensating for the depletion of the resource. However, this deduction is limited to 100% of the taxable income from the property before the percentage depletion deduction. In other words, a business cannot claim percentage depletion in excess of its taxable income.