Depletion is an income tax deduction usually claimed on Schedule E that recognizes that a mineral is consumed as it is mined. Depletion reduces the cost basis of the asset essentially converting part of the income from ordinary income tax rates to capital gains.
Royalty trusts often are publically traded limited partnerships which provide a tax package detailing how to file income taxes. Depletion is usually one of the deductions that reduces taxes paid on their unit payments.
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